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TO THE ANNUAL FINANCIAL REPORT2015

ANNUAL FINANCIAL REPORTFunds associated with the following functions and revenue sources: housing, dining, services and activities fee, student union building fee, recreation center fee, Wildcat Shop, and parking fees.

Fiscal Year Ended June 30, 2015

CONTENTS

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .vi - ix

AUDITOR’S REPORT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . x - xi

MANAGEMENT DISCUSSION AND ANALYSIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 - 12

ANNUAL FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 - 16

NOTES TO THE FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 - 43

APPENDICES TO THE FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 - 54

REQUIRED SUPPLEMENTARY INFORMATION (RSI) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 - 57

EXECUTIVE OFFICERS (at June 30, 2015)

Dr. James L. Gaudino, President

Ms. Sherer Holter, Chief of Staff

Dr. Marilyn Levine, Provost/Vice President for Academic and Student Life

Mr. George H. Clark, CFO/Vice President for Business and Financial Affairs

BOARD OF TRUSTEES (at June 30, 2015)

Mr. Sid W. Morrison, Chair

Mr. Keith Thompson, Vice Chair

Mr. Dan Dixon

Mr. Chris Liu

Mr. Ron Erickson

Mr. Glenn Johnson

Mr. Robert Moser

NOVEMBER 16, 2015

TO: Board of Trustees Central Washington University

It is with great pleasure that I present the attached annual financial report of Central Washington University .

This past year has been an exciting one for our university as we saw construction of the Science Phase II facility, which will be completed in September of next year, as well as the start of work on a number of long-awaited projects including the Samuelson STEM building, the renovation of Lind and Bouillon halls, and a much needed upgrading of campus utilities . We also experienced a record year-over-year increase in freshman enrollment as well as increasing diversity in our student body .

The small state normal school on the eastern edge of the Cascades nurtured so many years ago by Benjamin Barge, Phares Getz, and William Wilson has matured into one of the premier four-year public universities in the west . With our award-winning faculty, comprehensive curriculum, and affordable cost, I can say with all confidence that Central is poised for continued success as it enters its 125th year of existence .

Sincerely,

James L . GaudinoPresidentCentral Washington University

NOVEMBER 16, 2015

TO: MEMBERS OF THE BOARD OF TRUSTEES CENTRAL WASHINGTON UNIVERSITY

Attached is the annual financial report of Central Washington University . It has been prepared from the university’s accounting records and reflects Central Washington University’s financial position as of June 30, 2015, and the results of its operations for the year then ended .

Central Washington University maintains its accounts in accordance with the guidelines established by the Washington State Office of Financial Management and the state of Washington . This report has been prepared in accordance with generally accepted accounting principles and following the guidance of the Governmental Accounting Standards Board .

Sincerely,

George H . ClarkCFO/Vice President forBusiness and Financial Affairs

Central Washington University 2015 Annual Financial Report vi

CENTRAL WASHINGTON UNIVERSITYINITIATIVES AND ACHIEVEMENTS

Since it was founded in 1891, Central Washington University’s motto has been Docendo Discimus—”By Teaching, We Learn .” Over the past nearly 125 years, the university has embraced that doctrine and established itself as one of the premier undergraduate educational institutions in the Pacific Northwest with low-cost tuition, award-winning teachers, and 135 majors, 111 minors, and 63 program specializations .

2015 HIGHLIGHTS

The Economist magazine ranked CWU as the top-rated university in the state of Washington in a new ranking system that measures a college by its economic impact on graduates . The purpose of the study was “to determine which colleges deliver the greatest return and why .” CWU ranked 126 out of 1,275 public and private colleges and universities in a study by The Economist, one of the most respected financial periodicals in the world .

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The Educate to Career College Ranking Index (ETC) ranked CWU as the best university in Washington at improving earnings and ensuring employability of its graduates . CWU placed 110th on a survey of 1,200 colleges nationwide in student career success after graduation . The index considers the academic profile of students when they enter, the total costs related to attendance, and their success upon entering the labor market and measures each school’s ability to improve the employability and earnings power of their students .

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CWU was the only four-year university in Washington to receive the Higher Education Excellence in Diversity (HEED) Award in 2015 . This award is given annually by INSIGHT Into Diversity, the nation’s largest and longest-running diversity-focused magazine, and is the only national diversity honor for higher education . This is Central Washington University second year of being recognized for a commitment of expanding diversity and inclusion .

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Lisa Ely, geological sciences, has been selected as the 2015 recipient of the The Geological Society of America (GSA) Thompson International Distinguished Lecturer to tour outside of North America . This prestigious lecture tour is named after the internationally known former Harvard Professor James B . Thompson, Jr ., whose bequest to GSA contributed to the endowment of this lecture tour by a non-North America scientist within North America, as well as a parallel tour by a North American scientist outside of North America .

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Nick Zentner, geological sciences, was the 2015 recipient of the James H . Shea Award of the National Association of Geoscience Teachers “for exceptional contributions in the form of writing and/or editing of Earth science materials (broadly construed) that are of interest to the general public and/or teachers of Earth science .”

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vii Central Washington University 2015 Annual Financial Report

Dominic Klyve, mathematics, received the national Henry L . Alder Award for Distinguished Teaching from the Mathematics Association of America . Klyve is the first winner from Washington State in the 18-year history of the award . The National Science Foundation also awarded Klyve a $1 .5 million grant to design, publish, and test a new math curriculum based on primary historical sources .

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Professors Glen Bach and David Bieloh of the CWU Art Department earned Gold Awards in the 2015 Summit SCA (Summit Creative Awards) International Competition . Bieloh won for his book cover design for “Quench our Thirst With Salt” by Nicole Walker and Bach won for his poster design, Plant Sale for The Roy and Marjorie Bach Kittitas County Memorial Plant Sale . The competition received more than 5,000 entries from over 24 countries in a variety of categories covering print, online, media, marketing and promotion design materials .

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Jeffrey Snedeker, professor of music at CWU, was selected as the 2014-2016 Phi Kappa Phi Artist by The Honor Society of Phi Kappa Phi—the nation’s oldest and most selective all-discipline honor society . He is the first person from CWU to be awarded the national Phi Kappa Phi Artist Award .

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Laura Milner, director of Office of International Studies and Programs, received her second Fulbright Scholarship, to teach in Bogata, Columbia . She has taught on six continents .

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The CWU Horn Ensemble received an invitation to perform at the 47th annual International Horn Symposium, held in August 2015 at the Colburn School of Music in Los Angeles, California . Additionally, Professor Chris Bruya conducted the CWU Jazz Band 1 student performing group during an appearance at the Monterey Jazz Festival in September 2015 and the CWU Chamber Choir participated in the prestigious 47th Annual Tolosa International Choir Competition in Spain in October 2015 .

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The ‘Burg student radio station (88 .1 FM) won the College Broadcasters 2014 National Student Production Award for Best Podcast . The winning podcast, “The ‘Burg Spotlight,’ focuses on new music and music discovery .

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The Observer, the student-run newspaper, was named Best All-Around Non-Daily Newspaper in the Society of Professional Journalists’ Region 10 Mark of Excellence Awards . The contest honored the best of collegiate journalism in 2014 . Additionally, The Observer also won “Best of Show” in 2014 from the Associated Collegiate Press in the weekly, four-year college newspaper category .

Central Washington University 2015 Annual Financial Report viii

NEW FACILITY BOOST’S CWU SCIENCE PROGRAMS

Construction of the $64 million Science Phase II Building, to be completed in September 2016, thrusts CWU into the forefront of science research and instruction in the Pacific Northwest . The new structure will house the university’s geological sciences and physics .

Additionally, the new facility will be home of the Center for Excellence in Science and Mathematics Education, which supports and promotes interdisciplinary science and math teaching and research . Programs relocating into the new building were previously located across campus in different campus buildings . Space became so tight in Lind Hall that enrollment for some physics classes had to be capped .

The 120,000 square foot building will have an 80-seat lecture hall and planetarium, an observatory tower, and several specialty labs, such as optic and laser labs, an ice core lab, and an acoustic lab with an anechoic chamber—a specially designed room which completely absorbs either sound or electromagnetic wave reflections .

The new science facility is part of a university science neighborhood that includes Science Phase I, opened in 1998, the remodeled Dean Hall, which reopened in 2009, and the Samuelson STEM project, which is scheduled to be completed in late 2018 .

NEW CONSTRUCTION: NEW OPPORTUNITIES FOR STUDENTS

CWU has embarked on an ambitious series of capital projects designed to enrich the university’s exemplary teaching, research, and learning environments, including:

Samuelson STEM ProjectCWU procured $64 .5 million in state funding to restore and modernize the pre-Depression era Samuelson Union Building into an integrated computer science technology center . The revamped and expanded facility, called the Samuelson STEM project, will house in-demand STEM programs offered by the departments of Computer Science, Mathematics, and Information Technology and Administrative Management (ITAM) . It also will contain the office of Multimodal Learning and other distance education options, and the campus data center, which serves as the main campus digital and telecommunications hub and protects sensitive student and university information .

Lind Hall RenovationAbout $4 .9 million will be spent remodeling and modernizing Lind Hall, currently home of the departments of geological sciences and physics . Both departments will relocate into the new Science II building . The renovated Lind Hall will become home of the Aerospace and Military Science programs as well as Army and Air Force Reserve Officer Training Corps on one floor . Two other floors will centralize student services, now spread across several campus buildings . The project is scheduled to be completed in summer 2017 .

Bouillon Hall RenovationCWU will spend about $5 million to remodel and update Bouillon Hall, currently home of the department of communications and student services .

ix Central Washington University 2015 Annual Financial Report

The renovation will include making the building more earthquake-ready as well as upgrading fire and HVAC systems . Additionally, the project includes modernizing communications studios and laboratories and renovating facilities and purchasing materials to accommodate Disability Services Central Access Program . Following the remodel, student services will consolidate Department of Human Resources and Department of Student Success operations into the building . The project is scheduled to be completed in fall 2017 .

Old Heat – Community Education/Welcome CenterThe historic Old Heat steam facility, originally constructed in 1947 and mothballed since the early 1970s, will be repurposed for community education programs, ranging from information technology management to craft beer-making, and as a campus welcome center . The new facility would also host K-12 community outreach for STEM education . CWU will spend $4 .9 million to demolish and construct a replacement for the southern portion of the building to house the new facilities . The project is scheduled to be completed in late 2016 .

FRESHMAN ENROLLMENT INCREASES RECORD AMOUNT

Freshman fall enrollment at Central Washington University increased by 21 percent this year, a record year-over-year increase . The university enrolled 1,653 first-year students, 290 more freshmen than for the same time in 2014 .

The university’s total fall quarter enrollment of 10,912 students is the second highest number in school history . The academic profile of students remains strong, despite the large increase in enrollment . The average entering grade point average is 3 .2; average SAT score is about 1005 . The average student is 18 .5 years old and 51 percent are women .

CWU STUDENTS GROW MORE DIVERSE

In line with the times, the make up of Central Washington University’s student body continued to evolve as student diversity was up again in fall 2015 .

Students of color comprise 33 .3 percent of the freshman class, which represents a 2 .1 percent jump from the fall 2014 total . Overall, minority students account for nearly 30 percent of the university’s total enrollment of 10,912 .

Hispanic students alone comprise 16 .6 percent of the fall quarter incoming class, with 91 more Hispanic freshmen enrolled at CWU this year as compared to a year ago . Hispanic students make up 13 .3 percent of the university’s student body, which is the largest percent of any individual minority group . In the past seven years, Hispanic enrollment has risen from 835 to 1,446 students .

In addition, Native American and Pacific Islander student enrollment was up 20 percent over fall 2014 . And students self-identifying as multiracial jumped 21 percent in the year-to-year comparison .

Central Washington University 2015 Annual Financial Report x

WASHINGTON STATE AUDITOR’S OFFICE

INDEPENDENT AUDITOR’S REPORT ON FINANCIAL STATEMENTS

CENTRAL WASHINGTON UNIVERSITY SYSTEMJULY 1, 2014 THROUGH JUNE 30, 2015

February 26, 2016

Central Washington UniversityEllensburg, Washington

REPORT ON THE FINANCIAL STATEMENTSWe have audited the accompanying financial statements of business-type activities and the aggregate discretely presented component units of the Central Washington University, Kittitas County, Washington, as of and for the years ended June 30, 2015 and 2014, and the related notes to the financial statements, which collectively comprise the University’s basic financial statements . Management’s Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error .

Auditor’s ResponsibilityOur responsibility is to express opinions on these financial statements based on our audits . We did not audit the financial statements of the Central Washington University Foundation (the Foundation), which represents 100 percent of the assets, net position and revenues of the aggregate discretely presented component units . Those statements were audited by other auditors, whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for the Foundation, is based solely on the report of the other auditors .

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States . Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement . The financial statements of the Foundation were not audited in accordance with Government Auditing Standards .

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements . The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error . In making those risk assessments, the auditor considers internal control relevant to the University’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the University’s internal control . Accordingly, we express no such opinion . An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements .

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions .

xi Central Washington University 2015 Annual Financial Report

OpinionIn our opinion, based on our audits and the report of the other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the business-type activities and the aggregate discretely presented component units of the Central Washington University, as of June 30, 2015 and 2014, and the respective changes in financial position and, where applicable, cash flows thereof for the years then ended in accordance with accounting principles generally accepted in the United States of America .

Matters of EmphasisAs discussed in Note 1, the financial statements of the Central Washington University, an agency of the state of Washington, are intended to present the financial position, and the changes in financial position, and where applicable, cash flows of only the respective portion of the activities of the state of Washington that is attributable to the transactions of the University and its aggregate discretely presented component units . They do not purport to, and do not, present fairly the financial position of the state of Washington as of June 30, 2015, the changes in its financial position, or where applicable, its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America . Our opinion is not modified with respect to this matter .

As discussed in Note 1 to the financial statements, in 2015, the University adopted new accounting guidance, Governmental Accounting Standards Board Statement No . 68, Accounting and Financial Reporting for Pensions – an amendment of GASB Statement No. 27, and Statement No . 71, Pension Transition for Contributions Made Subsequent to the Measurement Date – an amendment of GASB Statement No. 68 . Our opinion is not modified with respect to this matter .

Other MattersRequired Supplementary InformationAccounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 14 through 25 and pension information on pages 68 through 69 be presented to supplement the basic financial statements . Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context . We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements . We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance .

Supplementary and Other InformationOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the University’s basic financial statements as a whole . The information identified in the table of contents as the Introductory Section and the appendices to the financial statements is presented for purposes of additional analysis and is not a required part of the basic financial statements . Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on it .

OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDSIn accordance with Government Auditing Standards, we have also issued our report dated February 26, 2016 on our consideration of the University’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters . The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance . That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the University’s internal control over financial reporting and compliance .

TROY KELLEYSTATE AUDITOROLYMPIA, WA

The following Management Discussion and Analysis (MD&A) provides an overview of the financial position and activities of Central Washington University (the university) for the fiscal year ended June 30, 2015, with comparative 2014 and 2013 financial information . This discussion provides an objective and easily readable analysis of the university’s financial performance for the year . This discussion has been prepared by management and should be read in conjunction with the financial statements and accompanying notes to the financial statements, which follow this section .

Central Washington University (CWU) is one of six state-assisted, four-year institutions of higher education in Washington . A regional comprehensive university, CWU offers baccalaureate and graduate degrees in more than 100 academic programs to over 10,000 students . The university has distinguished itself through quality teaching and academic programs, student-centered orientation, and commitment to research, outreach, and international experiences for faculty and students, and provision of life-long learning opportunities to the citizens of Washington . The university is comprised of the College of Arts and Humanities, College of the Sciences, College of Education and Professional Studies, and College of Business . CWU’s instructional faculty, numbering more than 600, compiles an impressive record of teaching, scholarship, and service . The main campus is located in Ellensburg, a community of approximately 18,000 that enjoys one of the finest living environments of the Pacific Northwest . Historic Ellensburg offers the laid-back atmosphere of a small town, but with a variety of things to do and see both indoors and out . Most enjoy downtown Ellensburg with its distinctive shops, bars, restaurants, museums all within walking distance . Others enjoy the outdoor experience of camping, fishing, horse-back riding, rafting, hiking, biking, and even golfing . In the shadow of the Cascade Mountains and only minutes from the Wenatchee National Forest, Ellensburg is situated in the Kittitas Valley, an agricultural region 110 miles east of Seattle, the cultural heart of Washington .

The university is governed by a Board of Trustees appointed by the Governor with the consent of the Senate . One member is a full-time student of the university . By statute the Board of Trustees has full control of the university and its property of various kinds, except as otherwise provided by law .

USING THE FINANCIAL STATEMENTS

The financial statements presented in this Annual Report encompass the university and it’s discretely presented component unit . The university’s financial reports include the Statement of Net Position, the Statement of Revenue, Expenses, and Changes in Net Position and the Statement of Cash Flows . The Statement of Net Position provides information about the university at a moment in time, at fiscal year-end . The Statement of Revenue, Expenses, and Changes in Net Position and the Statement of Cash Flows provide information about operations and activities over a twelve month period of time . Together these statements, along with the notes to the financial statements, provide a comprehensive way to assess the university’s overall financial health .

The financial statements are prepared in accordance with generally accepted accounting principles as prescribed by the Governmental Accounting Standards Board (GASB) which establish standards for external financial reporting for public colleges and universities . In accordance with GASB requirements the financial statements are prepared utilizing the accrual basis of accounting and presented on a consolidated basis to focus on the university as a whole .

The Central Washington University Foundation (the foundation) is a significant component unit based on the requirements of GASB Statement 39 . This report reflects the foundation as a discretely reported entity for all years reported . The reader will see reformatted CWU comparatives in this report . The Management’s Discussion and Analysis, however, focuses on university activity unless otherwise noted .

_________________________________________MANAGEMENT DISCUSSION AND ANALYSIS

Central Washington University 2015 Annual Financial Report 1

FINANCIAL HIGHLIGHTS FOR FISCAL YEAR 2015

Net Position increased $16 .9 million during fiscal 2015 from operating and non-operating activities, and decreased by $27 .8 million due to the implementation of new accounting standards (GASB 68), resulting in a net decrease of $10 .9 million compared to an increase of $2 .9 million in the prior fiscal year . This decrease is primarily due to the implementation of a new accounting standard requiring the recognition of CWU’s portion of the State’s unfunded pension liability .

Several infrastructure improvements and remodeling projects were underway during fiscal year 2015 including (See Note 7 for additional capital asset information .):

Continued Science Phase II: Currently under construction, this building will provide modern classroom and laboratory space in a single facility and is the completion of a project conceived and launched more than fifteen (15) years ago and will house three high demand Science Technology Engineering and Math (STEM) programs:

• The Department of Physics, including the Physics-Engineering dual degree program• The Department of Geological Sciences• The Center for Excellence in Science and Math Education

Completion of iCat: This project was designed to enhance the information software infrastructure utilized by the university . This project, completed in fiscal 2015, upgraded and improved various software applications used to analyze, plan, and carry out the operations of the university including budgeting, accounting, procurement, communications and information flow .

Combined Utilities: The university embarked on a multi-biennia project to replace old deteriorated, energy inefficient, and under-capacity utilities in a combined manner to minimize cost and campus impact .

The university successfully enrolled 1,653 freshman students in fall 2015, successfully exceeding the fall 2014 class number by 21 percent despite increased competition from other Washington public universities . This increase was achieved by adopting a more targeted approach to marketing that focuses on students most likely to enroll at Central .

MANAGEMENT DISCUSSION AND ANALYSIS (continued) __________________________________________________________________________

2 Central Washington University 2015 Annual Financial Report

KEY FINANCIAL RESULTS FOR FY 2015 COMPARED TO FY 2014 AND FY 2013(in thousands)

2015 2014 2013 ___________ ___________ ___________Total operating revenues $ 149,436 $ 149,213 $ 148,706Operating expenses 215,252 210,457 197,388 ___________ ___________ ___________ Operating Loss (65,816) (61,245) (48,682)

State appropriations 38,777 39,268 32,261Investment income (loss) 4,524 3,894 2,560Capital appropriations 28,040 9,784 5,035Pell grant revenue 17,212 16,758 16,417Interest on indebtedness (6,305) (6,262) (8,354)Non-operating income net of expenses 439 668 821 ___________ ___________ ___________ Total net non-operating revenue and capital appropriations 82,687 64,110 48,740

Increase (decrease) in net assets 16,871 2,865 60 Net Position (as restated), beginning of year 322,335 347,262 347,202 ___________ ___________ ___________ Net Position, end of year $ 339,206 $ 350,127 $ 347,262

• Operating revenues increased by $ .2 million or .2% over the prior fiscal year .• Operating expenses increased by $4 .8 million or 2 .3% over the prior fiscal year mainly due to GASB 68 pension expense .• State operating appropriations decreased $ .5 million over the prior fiscal year .• Pell Grant revenue increased to $17 .2 million .• Interest on indebtedness increased $ .04 million over the prior fiscal year .• Total net non-operating revenues increased by $18 .5 million due to increased capital appropriations .

Operating revenues typically are not sufficient to cover all of the university’s operating expenses yielding an operating loss . Non-operating revenues which include; state operating and capital appropriations, Pell grant revenue, investment income and non-operating income net of expense result in a modest increase in the net position or “equity” of the university . The equity is re-invested in the university for facility upgrades, contingency reserves to offset periods of economic instability, and to increase the level of educational excellence and operational efficiencies .

STATEMENT OF NET POSITION

The Statement of Net Position presents the financial status of the university at the end of the last two fiscal years and includes all assets and liabilities of the university . This statement represents assets available to continue operations of the institution and how much the institution owes vendors, employees, investors and debt service obligations . Several nonfinancial factors also contribute to the university’s financial health and include: student enrollment, number of full-time faculty, student retention, graduation rates, building conditions and campus safety .

__________________________________________________________________________ MANAGEMENT DISCUSSION AND ANALYSIS (continued)


STATEMENT OF NET POSITION – JUNE 30, 2015, 2014 AND 2013(in thousands)

2015 2014 2013 ___________ ___________ ___________Current assets $ 72,344 $ 75,363 $ 78,695Non-current assets 43,623 41,461 37,376Capital assets, net of depreciation 416,028 398,507 398,026 ___________ ___________ ___________ Total assets 531,995 515,331 514,097

Deferred outflows 2,726 2,409 2,530 ___________ ___________ ___________

Current liabilities 26,856 28,532 26,933Non-current liabilities 158,875 139,081 142,431 ___________ ___________ ___________ Total liabilities 185,731 167,613 169,364

Deferred inflows 9,784 – –

Net investment in capital assets 276,433 264,549 260,002Restricted, non-expendable 5,130 5,058 5,124Restricted, expendable 16,374 14,917 14,685Unrestricted 41,269 65,603 67,451 ___________ ___________ ___________ Total net position $ 339,206 $ 350,127 $ 347,262

Assets and Deferred Outflows of Resources

Current assetsThe excess of current assets over current liabilities of $45 .5 million in 2015 reflects the continuing ability of the university to meet its short-term obligations . Current assets are those highly liquid assets that may be converted to cash in less than one year and include cash and cash equivalents, short term investments, accounts receivable and inventories . Current assets decreased $3 .0 million to $72 .3 million at June 30, 2015 and the most significant fluctuations are discussed below:

Cash and cash equivalents decreased by $5 .5 million to $48 .5 million . To obtain more favorable investment returns the university invested additional funds in state and municipal bonds and will continue to maximize earnings while maintaining sufficient cash and cash equivalents to meet current operations and to fund major projects .

The increase in accounts receivable of $2 .4 million was primarily due to capital appropriations receivable and increased student receivables .

Non-Current AssetsNon-current assets are not expected to be converted into cash, sold, or exchanged within the normal operating cycle and include: investments, student loan receivables, and cash restricted for capital projects . Capital assets include construction in progress, furniture and equipment, land, buildings and improvements . As of June 30, 2015 non-current and capital assets, net of depreciation increased by $19 .7 million to $459 .7 million .

Capital assets, net of depreciation increased by $17 .5 million to $416 .0 million in FY15 compared to $398 .5 million in the prior year . Long-term investments increased by $5 .0 million to $35 .1 million in fiscal year 2015 as the university took advantage of opportunities to invest in bonds in order to increase earnings .

Deferred Outflows of ResourcesDeferred gain or loss on debt refunding represents the difference between the reacquisition price and the carrying value of the CWU System revenue bonds series 2004 which were advance refunded during 2013 . The CWU System is comprised of the Housing and Dining, Bookstore, Parking and Student Activities funds .

Although the advance refunding will generate approximately $10 million of savings over the remaining life of the bonds, there was a book value cost to the transaction of approximately $2 .6 million . Of this amount $2 .2 million remains as a deferred outflow to be recognized over the life of the bonds (Note 01) .

The implementation of GASB 68 required the recognition and amortization of CWU’s proportionate share of the various pension plan liabilities, resulting in the recognition of approximately $ .4 million of deferred outflows related to pension liabilities .



Liabilities

Current liabilities are claims that are due and payable within one year and include: accounts payable, accrued payroll liabilities, unearned revenues, deposits payable, and the current portion of bonds/leases payable . Non-current liabilities represent obligations that become due after one year and include compensated absences, supplemental retirement liabilities, and long-term debt obligations (Notes 8, 9, 11, 12, 13 and 14) .

Current liabilities typically fluctuate from the timing of processing accounts payable and deposits payable, changes in the current year bond/leases payment schedule, and the changes in unearned revenue . Current liabilities at June 30, 2015, were $26 .9 million representing a decrease of $1 .7 million from 2014 mainly due to decreased Accounts Payable activity .

Non-current liabilities increased by $20 million to $158 .9 million at June 30, 2015 due primarily to the recognition of CWU’s share of the state’s unfunded pension liability recognized in the implementation of GASB 68 .

Deferred Inflows of ResourcesThe implementation of GASB 68 required the recognition and amortization of changes in the net pension liability resulting in the recognition of a deferred inflow of $9 .8 million to be amortized over the following four to five years .

Net PositionThe difference between total assets and total liabilities is net position (equity), and it is an indicator of the university’s overall financial condition .

Net position is divided into four major categories .

Net Investment in Capital Assets: Equity in property, plant, equipment, and infrastructure, net of accumulated depreciation, and outstanding debt obligations related to those capital assets .

Restricted Non-Expendable: Funds on which a donor or external party has imposed restrictions .

Restricted Expendable: Resources which the university is legally or contractually obligated to spend in accordance with restrictions placed on the funds .

Unrestricted: All other funds available to the university for general and educational obligations and may be expended for any lawful purpose . In many cases, these funds have been internally designated for specific purposes,

including board required emergency reserves, debt policy requirements, facilities maintenance, and other purposes .

As of June 30, 2015, net position totaled $339 .2 million, a decrease of $10 .9 million from the balance at June 30, 2014 . Net position from operating and non-operating activities increased by $16 .9 million during 2015, the implementation of GASB 68 required the recognition of CWU’s portion of the state’s unfunded pension liability on the financial statements, and a restatement of the current year’s beginning Net Position of ($27 .8) million .



STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION

The Statement of Revenues, Expenses, and Changes in Net Position provides information about the operating performance of the university and the effects of non-operating transactions over a one-year period of time . The statement classifies activities as either “operating” or “non-operating .”

Operating revenues are inflows of funds generated through the provision of goods and services to the university’s customers which include tuition and fees, grant and contract payments, and sales and service revenue generated by student housing, student dining and other university enterprises . Operating expenses are the outflows of funds used to generate operating revenues and in carrying out the university’s mission .

Non-operating revenues include state operating and capital appropriations, Pell grants, and investment income . Non-operating expenses are mainly interest on indebtedness . Following is a condensed comparison of the university’s revenues, expenses, and changes in net position for the years ended June 30, 2015, 2014, and 2013 .

The university maintains a diversified revenue base comprised of tuition and fees, state appropriations, grants and sponsored programs, auxiliary enterprises, and non-operating income . Operating revenues in fiscal year 2015 totaled $149 .5 million representing an increase of $ .3 million from 2014 .



SUMMARY STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION (in thousands)

2015 2014 2013 ___________ ___________ ___________Operating revenues $ 149,436 $ 149,213 $ 148,706Operating expenses 215,252 210,457 197,388 ___________ ___________ ___________ Operating Income (loss) (65,816) (61,244) (48,682)

Non-operating revenues & capital appropriations 88,992 70,372 57,096Non-operating expenses (6,305) (6,262) (8,354) ___________ ___________ ___________ Net non-operating revenues (expenses) 82,687 64,110 48,742

Increase (Decrease) in net position 16,871 2,865 60Net position beginning of year (as restated) 322,335 347,262 347,202 ___________ ___________ ___________ Net position end of year $ 339,206 $ 350,127 $ 347,262

Revenues by Source



OPERATING REVENUES FY 2015

Auxiliary Services; 17%

Grants and Contracts; 14%

Operating Appropriations; 16%

Pell Grant; 7%Capital Appropriations; 12%

Investment Income; 2%

Other Revenueand Gifts; 1%

Tuition and Fees; 30%

OPERATING REVENUES FY 2014

Auxiliary Services; 19%

Grants and Contracts; 14%

Operating Appropriations; 18%

Pell Grant; 8%Capital Appropriations; 4%

Investment Income; 2%

Other Revenueand Gifts; 3%

Tuition and Fees; 32%

Net tuition and fees remain the primary source of revenue, increasing $1 .2 million in FY15 to $72 .4 million representing 30% of the total university revenues .

Auxiliary enterprises generated 17% of total revenue representing a decrease of $1 .1 million to $40 .3 million as of June 30, 2015 due to decreased participation of on campus student activities such as housing and dining . Auxiliary services include essential support programs such as residential housing and dining, catering, bookstore and conference program .

Grants and contracts provide student financial aid and support the university’s educational and research activities . In fiscal 2015 grants and contracts revenues increased $2 .6 million over the prior year due to increases in National Science Foundation and Department of Education grant funding .

Capital appropriations increased $18 .3 million over the prior year to $28 .0 million due to an increase in funding provided by the state legislature for continued work on the Science building (Science Phase II) .

Gross non-operating revenues totaled $88 .9 million in FY 2015 representing an increase of $18 .6 million from 2014 driven mainly by an increase of capital appropriations .

Investment income increased in 2015 by $ .6 million to $4 .5 million resulting from an increase in both CWU and State held long-term investments as the market experienced improvements in investment performance .



REVENUES BY SOURCE (in thousands)

2015 Percent (%) 2014 Percent (%) 2013 Percent (%) ___________ ___________ ___________ ___________ ___________ ___________Net tuition and fees $ 72,383 30% $ 71,125 32% $ 70,292 34%Grants and contracts 34,281 14% 31,699 14% 35,155 17%Auxiliary services 40,301 17% 41,439 19% 40,061 20%Operating appropriations 38,777 16% 39,268 18% 32,261 16%Capital appropriations 28,040 12% 9,784 4% 5,034 2%Pell grant 17,212 7% 16,758 8% 16,417 8%Investment income 4,524 2% 3,894 2% 2,560 1%Other revenues and gifts 2,910 1% 5,618 3% 4,019 2% ___________ ___________ ___________ ___________ ___________ ___________ Total $ 238,428 100% $ 219,585 100% $ 205,799 100%

Operating and Non-operating ExpensesOperating expenses consist mainly of employee compensation, supplies and material costs, and student scholarships and other aid . Operating expenses are displayed in the following table by functional area as this is the industry standard . (See Note 18 for a listing of operating expenses by natural classification .)

Non-operating expenses are those that do not relate to the core operation of the university . Examples of non- operating expenses are interest expense and amortization expense .

Total operating expenses increased by $4 .8 million to $215 .2 million with the highest proportional increase in the instruction and institutional support categories . Direct instruction expenses increased $1 .6 million to $80 .9 million as the university continued to augment the number of faculty to address class workloads and implemented the second year of contractually obligated faculty salary increases . Additionally, institutional support areas showed increased expenses due to university iCAT initiatives (such as the Time and Attendance and enhancements to our budgeting and accounting systems), as well as classified salary increases .



OPERATING AND NON-OPERATING EXPENSES (in thousands)

2015 2014 2013 ___________ ___________ ___________Operating expenses $ 215,252 $ 210,457 $ 197,388Non-operating expenses 6,305 6,262 8,322 ___________ ___________ ___________ Total operating and non-operating expenses $ 221,557 $ 216,719 $ 205,710

OPERATING EXPENSES BY FUNCTION (in thousands)

2015 Percent (%) 2014 Percent (%) 2013 Percent (%) ___________ ___________ ___________ ___________ ___________ ___________Instruction $ 80,882 38% $ 79,278 38% $ 73,375 37%Research 2,472 1% 2,054 1% 2,133 1%Public service 3,640 2% 2,498 1% 1,942 1%Academic support 12,456 6% 11,705 6% 10,814 6%Student services 11,195 5% 10,271 5% 9,616 5%Institutional support 22,301 10% 21,221 10% 17,825 9%Operations and maintenance of plant 11,293 5% 10,941 5% 11,476 6%Scholarships and other student aid 13,174 6% 13,379 6% 11,859 6%Auxiliary 42,598 20% 42,162 20% 41,683 21%Depreciation 15,241 7% 16,948 8% 16,665 9% ___________ ___________ ___________ ___________ ___________ ___________ Total operating expenses $ 215,252 100% $ 210,457 100% $ 197,388 100%



OPERATING AND NON-OPERATING EXPENSES FY 2015

Instruction; 38%

Depreciation; 7%

Research; 1%

Institutional Support; 10%Academic Support; 6%

Public Service; 2%

Plant Operationsand Maintenance; 5%

Auxiliary; 20%

StudentServices; 5%

Scholarship; 6%

OPERATING AND NON-OPERATING EXPENSES FY 2014

Instruction; 38%

Depreciation; 8%

Research; 1%

Institutional Support; 10%Academic Support; 6%

Public Service; 1%

Plant Operationsand Maintenance; 5%

Auxiliary; 20%

StudentServices; 5%

Scholarship; 6%


Public service expenses increased in fiscal 2015 by $1 .1 to $3 .6 million . The increase in public service was mainly due to increased Department of Education grants to assist with graduate studies and research .

Auxiliary costs, while increasing $ .4 million over the 2014 fiscal year, have remained constant as a percentage of total operating expense by function .

Instructional expenses totaled $80 .9 million and comprised 38% of all university operating expenses during fiscal year 2015 with a three year average of 37% of total . The university remains committed to its primary mission of preparing students for responsible citizenship, responsible stewardship of the earth, and to lead enlightened and productive lives . Enduring reductions in state funding have driven the need for the university to continue to effectively manage its limited resources while still providing quality instruction to a growing student body .

CAPITAL CONSTRUCTION AND RELATED DEBT

Capital construction is a high priority as the university modernizes and replaces academic and residential facilities, continues to develop and improve campus infrastructure and utilities, and reduces deferred maintenance . Major remodeling and system upgrade projects continue on campus that will bring older buildings and infrastructure into compliance with current teaching methodology and technology, health and safety needs, and code requirements .

The university had $416 .0 million in capital assets net of depreciation at fiscal year-end 2015 and has the following major capital project priorities (See Note 7 for additional capital asset information .):

The university was incredibly fortunate to receive capital funding totaling more than $90 million in the FY 2014-16 biennium Washington state budget . The following projects are funded in the previous and current biennium and are underway or scheduled to begin construction soon:

Science Phase II: Currently under construction, this building will provide modern classroom and laboratory space in a single facility and is the completion of a project conceived and launched more than fifteen (15) years ago and will house three high demand Science Technology Engineering and Math (STEM) programs:

• The Department of Physics, including the Physics-Engineering dual degree program• The Department of Geological Sciences• The Center for Excellence in Science and Math Education

Science II will be vastly more energy efficient in comparison to the old facilities replaced and is designed to be LEED-Gold certified to assist the university in meeting energy conservation goals . Science II will also add needed classroom and lab space required to increase degrees in engineering, physics, and geology and produce more K-12 teachers in STEM fields .

Samuelson STEM Project: The initial phase of this $64 .5 million project will include demolishing portions of an unreinforced masonry structure originally completed in 1926 and removing hazardous materials . Later, the building will be rebuilt and updated for use as an integrated science technology center . The new facility will house:

• The Department of Computer Science• The Department of Mathematics• The Department of Information Technology and Administrative Management (ITAM)• Office of Intermodal Learning• Campus data center



Renovation of Lind and Bouillon Halls: About $4 .9 million will be spent remodeling and updating Lind Hall and about $5 million to modernizing and renovating Bouillon Hall . The renovated Lind Hall will house the Aerospace and Military Sciences programs . The refurbished Bouillon Hall will remain home of:

• Department of Communications• Department of Human Resources• Disability Services Central Access Program• Department of Student Success

Old Heat – Community Education/Welcome Center: The Old Heat steam facility with its distinctive brick smokestack will be renovated for community education and outreach programs including a welcome center, craft beer-making classes, safety and health management programs, and information technology management programs . The south side of the current building will be demolished and replaced as part of the project .

Minor Works: Includes multiple projects that maintain, preserve and extend the life of existing state facilities such as landscaping, campus storm water, building exteriors, and infrastructure upgrades .

Combined Utilities: A multi-biennia project to replace old deteriorated, energy inefficient, and under capacity utilities in a combined manner to minimize cost and campus impact .

PROSPECTS FOR THE FUTURE

Central Washington University’s financial position continues to improve and we enter FY 15 in a solid financial position despite the recent struggles with both the state and national economies . Net positions continue to increase as a result of effective budget management, continued identification of efficiencies and adoption of a pro-active enrollment management plan that both acknowledges and adapts to the increasing competitiveness of attracting highly qualified students as well as focuses on “yield,” meaning it targets those students most likely to enroll at Central . Our financial resources together with our planned capital and infrastructure improvements provide a strong foundation to further enhance our core mission . As the State’s economy slowly stabilizes and begins to improve, the university’s administration is cautiously optimistic the state legislature will continue to develop a plan that will re-instate some of the funding lost during the recession . While the university acknowledges funding levels may never get back to pre-recession levels, we are hopeful a long-term plan can be put in place that will allow for moderate increases in tuition .

Even through these rough and turbulent times the university has never lost touch with its core values and mission, which is to prepare students for responsible citizenship, responsible stewardship of the earth and enlightened and productive lives .



CENTRAL WASHINGTON UNIVERSITY STATEMENT OF NET POSITIONAS OF JUNE 30, 2015 AND 2014

2015 2014 CWU Foundation CWU Foundation ____________ ____________ ____________ ____________Assets Current assets Cash and cash equivalents $ 48,531,403 $ 310,267 $ 54,074,793 $ 472,870 Accounts receivable, net 20,045,325 1,108,829 17,656,348 783,886 Student loan receivable, net 1,417,111 – 1,203,767 – Interest receivable 487,575 – 449,370 – Inventories 1,863,045 – 1,979,061 – ____________ ____________ ____________ ____________ Total current assets 72,344,458 1,419,096 75,363,339 1,256,756 ____________ ____________ ____________ ____________

Non-current assets Cash restricted for capital projects – – 1,126,840 – Investments restricted for capital projects – – – – Investments 35,073,027 23,597,243 30,042,160 23,039,982 Student loan receivable, net 4,727,236 – 6,328,363 – Prepaid bond insurance 694,244 – 727,072 – Funds with State Treasurer 3,128,432 – 3,236,333 – Capital assets, net of depreciation 416,027,995 – 398,506,737 – ____________ ____________ ____________ ____________ Total non-current assets 459,650,933 23,597,243 439,967,505 23,039,982 ____________ ____________ ____________ ____________

Total assets 531,995,392 25,016,339 515,330,844 24,296,738 ____________ ____________ ____________ ____________

Deferred out-flows of resources Deferred outflow from bond refunding 2,288,667 – 2,409,123 – Deferred outflow from pension contributions 437,122 – – – ____________ ____________ ____________ ____________ Deferred outflow 2,725,789 – 2,409,123 – ____________ ____________ ____________ ____________

Liabilities Current liabilities Accounts payable 3,309,430 313,919 6,147,224 280,186 Accrued liabilities, current portion 9,933,287 101,319 8,512,511 103,187 Deposits payable 1,862,634 – 1,842,906 – Unearned revenues 7,272,740 – 7,744,041 – Net bond premium/discount net of amortization 203,083 – – – Leases and bonds payable, current portion 4,275,000 – 4,285,000 – ____________ ____________ ____________ ____________ Total current liabilities 26,856,174 415,238 28,531,683 383,373 ____________ ____________ ____________ ____________

Non-current liabilities Construction accounts payable – – 1,126,840 – Accrued liabilities 30,802,588 – 5,145,208 – Net bond premium/discount net of amortization 3,917,112 – 4,378,860 – Long-term liabilities 124,155,000 – 128,430,000 – ____________ ____________ ____________ ____________ Total non-current liabilities 158,874,700 – 139,080,908 – ____________ ____________ ____________ ____________

Total liabilities 185,730,873 415,238 167,612,592 383,373 ____________ ____________ ____________ ____________

Deferred in-flows of resources Deferred inflows related to pensions 9,783,658 – – – ____________ ____________ ____________ ____________

Net position Net investment in capital assets 276,433,003 – 264,549,072 – Restricted for: Non-expendable: Scholarships and professorships 5,130,410 11,375,851 5,057,608 11,024,915 Expendable: Endowment earnings 460,663 1,935,120 602,076 1,457,383 Loans 10,453,332 – 10,435,150 – Other 5,460,907 9,915,615 3,879,986 9,489,461 Unrestricted 41,268,335 1,374,515 65,603,484 1,941,606 ____________ ____________ ____________ ____________ Total net position $ 339,206,649 $ 24,601,101 $ 350,127,376 $ 23,913,365

See Accompanying Notes to the Financial Statements

ANNUAL FINANCIAL STATEMENTS ______________________________________________________________________

CENTRAL WASHINGTON UNIVERSITYSTATEMENT OF REVENUE, EXPENSES, AND CHANGES IN NET POSITION

AS OF JUNE 30, 2015 AND 2014

2015 2014 CWU Foundation CWU Foundation ____________ ____________ ____________ ____________

Operating revenues Student tuition and fees $ 112,267,508 $ – $ 109,542,841 $ – Less tuition discounts (39,885,056) – (38,418,237) – Federal grants and contracts 7,201,170 2,674,423 5,532,982 2,177,974 State and local grants and contracts 21,294,122 – 20,562,242 – Non-governmental grants and contracts 5,786,385 – 5,603,910 – Sales and services of educational activities and other sources 2,357,264 34,290 4,808,198 51,313 Interest earned on loans to students 112,776 – 142,422 – Auxiliary enterprises sales - housing and dining 29,245,458 – 30,102,132 – Other auxiliary sales 11,826,076 – 12,066,507 – Less auxiliary discounts (769,862) – (730,094) – ____________ ____________ ____________ ____________ Total operating revenue 149,435,841 2,708,713 149,212,902 2,229,287 ____________ ____________ ____________ ____________

Operating Expenses Educational and general Instruction 80,882,240 21,559 79,277,752 17,945 Research 2,472,153 – 2,054,493 – Public service 3,639,872 – 2,498,202 – Academic support 12,455,964 1,590,436 11,705,215 696,885 Student services 11,194,714 882,913 10,271,211 499,486 Institutional support 22,301,279 340,750 21,220,597 425,327 Operation and maintenance of plant 11,292,965 – 10,941,040 – Scholarships and other student aid 13,173,874 949,442 13,379,334 865,037 Auxiliary enterprise expenditures 42,597,817 – 42,161,828 – Depreciation 15,240,940 – 16,947,733 – ____________ ____________ ____________ ____________ Total operating expenses 215,251,817 3,785,100 210,457,404 2,504,680 ____________ ____________ ____________ ____________

Operating income (loss) (65,815,977) (1,076,387) (61,244,502) (275,393) ____________ ____________ ____________ ____________

Non-operating revenues (expenses) State appropriations 38,777,000 – 39,268,000 – Pell grant 17,211,869 – 16,757,659 – Investment income 4,523,994 1,552,879 6,974 3,364,215 Gifts to permanent endowments – 211,244 – 397,929 Interest on indebtedness (6,304,481) – (6,261,812) – Non-operation income net of expenses 438,589 – 668,187 – ____________ ____________ ____________ ____________ Net non-operating revenues (expenses) 54,646,971 1,764,123 50,439,008 3,762,144 ____________ ____________ ____________ ____________

Income (or loss) before other revenue, expenses, gains, or losses (11,169,006) 687,736 (6,918,307) 3,486,751 ____________ ____________ ____________ ____________

Capital appropriations 28,040,227 – 9,783,566 –, ____________ ____________ ____________ ____________

Increase (Decrease) in net position 16,871,221 687,736 2,865,259 3,486,751 ____________ ____________ ____________ ____________

Net position, beginning of year (as restated) 322,335,428 23,913,365 347,262,117 20,426,614 ____________ ____________ ____________ ____________

Net position, end of year $ 339,206,649 $ 24,601,101 $ 350,127,376 $ 23,913,365 ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________


____________________________________________________________________________________________ANNUAL FINANCIAL STATEMENTS (continued)


CENTRAL WASHINGTON UNIVERSITYSTATEMENT OF CASH FLOWS

FOR THE YEAR ENDED JUNE 30, 2015

2015 ____________Cash flows from operating activities Tuition and fees $ 70,453,630 Grants and contracts 34,489,570 Payments to vendors (80,167,692) Payments to employees for salaries and benefits (114,938,606) Auxiliary enterprise charges 40,051,979 Sales and services of educational activities and other sources 2,875,369 Interest received on loans to students 74,571 ____________ Net cash used by operating activities (47,161,178) ____________

Cash flows from non-capital financing activities State appropriations 38,776,751 Pell grants 17,211,869 Gifts for other than capital purposes – ____________ Net cash provided by non-capital financing activities 55,988,620 ____________

Cash flows from investing activities Purchases of investments (5,093,091) Proceeds from sales of investments 62,224 Investment income 4,523,994 Other investment activity 107,901 ____________ Net cash provided by investing activities (398,972) ____________

Cash flows from capital and related financing activities Capital appropriations 28,040,227 Purchase of capital assets (32,762,198) Proceeds from capital debt (10,000) Principal paid on capital debt (4,275,000) Interest paid on capital debt (6,304,481) Other capital activities 212,753 ____________ Net cash provided by capital and related financing activities (15,098,700) ____________

Net increase in cash and cash equivalents (6,670,230) ____________

Cash and cash equivalents, beginning of year 55,201,633

Cash and cash equivalents, end of year $ 48,531,403 ____________ _______________________________________________________________________________________________________________________________________

Reconciliation of Operating Loss to Net Cash Used by Operating Activities Operating loss (65,815,977) ____________ Adjustments to reconcile operating loss to net cash used by operating activities Depreciation 15,240,940 Changes in assets and liabilities Accounts receivable (2,388,727) Student loans receivable 1,387,784 Interest receivable (38,205) Inventories 116,016 Accounts payable (3,964,635) Accrued expenses 8,753,199 Unearned revenue (471,301) Student and other deposits 19,728 ____________ Net cash used by operating activities (47,161,178) ____________ ____________


ANNUAL FINANCIAL STATEMENTS (continued) ____________________________________________________________________________________________


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Financial Reporting EntityCentral Washington University (the university) is a comprehensive regional institution of higher education offering baccalaureate and master degrees . The university is an agency of the State of Washington, governed by a board of trustees appointed by the governor, and included in the general-purpose financial statements of the State of Washington . As defined by generally accepted accounting principles established by the Governmental Accounting Standards Board (GASB), the financial reporting entity consists of the primary government, as well as its component unit, the Central Washington University Foundation (the foundation) . The foundation is an independent, non-profit organization established to raise private funds that support the students, faculty, and programs of the university . Accordingly, the foundation has been reported as a discrete component unit in the financial statements . Separate financial statements of the foundation may be requested from its administrative office at Barge Hall, room 401, Ellensburg, WA 98926 or on the CWU Foundation website at www .cwu .edu/foundation/foundation-accounting .

Financial Statement PresentationThe financial statements of the University have been prepared in accordance with Generally Accepted Accounting Principles (GAAP) .

For financial reporting purposes, the university is considered a special-purpose government, engaged in business-type activities . Accordingly, the university’s financial statements have been presented using the economic resources measurement focus and the accrual basis of accounting . Under the accrual basis, revenues are recognized when earned, and expenses are recorded when obligations have been incurred . Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the providers have been met . All significant intra-agency transactions have been eliminated .

The financial statements include a management discussion and analysis, a statement of net position, a statement of revenues, expenses, and changes in net position, a statement of cash flows, and notes to the financial statements . The notes to the financial statements focus on university activity in all years presented unless otherwise noted . The format provides a comprehensive, entity-wide perspective of the university’s assets, liabilities, net position, revenues, expenses, changes in net position, and cash flows . Comparative totals for the year ended June 30, 2014, are presented where appropriate .

The Governmental Accounting Standards Board (GASB) issued Statement 61, The Financial Reporting Entity: Omnibus-an amendment of GASB Statements No. 14 and No. 34 which along with Statement 39, Determining Whether Certain Organizations are Component Units, which amended GASB Statement 14, The Financial Reporting Entity . These statements provided additional guidance for determining whether certain organizations should be reported as component units based on the nature and significance of their relationship with a primary government and to clarify reporting requirements for those organizations .

Under GASB 61 and 39 criteria the CWU Foundation is an affiliated organization that meets the criteria for discrete component-unit presentation . The university and it’s discretely presented foundation unit are shown in separate columns in the financial statements . The CWU Foundation has a separately audited financial statement . The provisions of GASB Statement 39 were effective for financial statements for periods beginning with fiscal year 2004, while GASB 61 became effective for financial statements beginning with fiscal year 2012 .

Cash EquivalentsFor purposes of the statement of cash flows, the university considers all highly liquid investments with an original maturity of 90 days or less to be cash equivalents . Funds invested through the State Treasurer’s Local Government Investment Pool are considered cash equivalents .


___________________________________________________________________NOTES TO FINANCIAL STATEMENTSCENTRAL WASHINGTON UNIVERSITY — June 30, 2015 and June 30, 2014

InvestmentsThe university accounts for its investments at fair value in accordance with GASB Statement No . 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools . Changes in unrealized gains or losses on the carrying value of investments are reported as a component of investment income in the statement of revenues, expenses, and changes in net position .

Accounts ReceivableAccounts receivable consist of tuition and fee charges to students and auxiliary enterprise services provided to students, faculty, and staff . Accounts receivable also includes amounts due from the federal government, state and local governments, or private sources, in connection with reimbursement of allowable expenditures made pursuant to the university’s grants and contracts . Accounts receivable are recorded net of estimated uncollectible amounts . Uncollectible amounts are calculated using a fixed percentage of receivables .

InventoriesInventories consist primarily of merchandise and consumables held by internal service, valued using the weighted average cost method, and auxiliary service departments valued using the retail cost method .

Non-current Cash and InvestmentsCash and investments that are externally restricted to make debt service payments, maintain sinking or reserve funds, or to purchase or construct capital or other non-current assets, are classified as non-current assets in the statement of net position .

Capital AssetsCapital assets are recorded at cost at the date of acquisition, or fair market value at the date of donation in the case of gifts, net of depreciation . The university’s capitalization policy includes all items with a unit cost of $5,000 or more, and an estimated useful life of greater than one year .

Renovations to buildings, infrastructure, and land improvements that significantly increase the value or extend the useful life of the structure are capitalized . Routine repairs and maintenance are charged to operating expenses in the year in which the expenses were incurred .

Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets, generally 15 to 50 years for building components, 20 to 50 years for infrastructure and land improvements, 5 to 7 years for equipment, 15 years for library books, and 3 to 15 years for intangibles . Inexhaustible resources such as the art collections and the library reserve collections are not depreciated . Beginning fiscal year 2005, CWU began depreciating its exhaustible library resources on a straight-line basis over 15 years . Unrecorded depreciation accumulated prior to June 30, 2005, on exhaustible library resources is being spread over 10 years starting June 30, 2005, and ending June 30, 2014 . (See also Note 7 – Capital Assets .)

Deferred Outflows of ResourcesDeferred outflows of resources are a consumption of net assets by the government that is applicable to a future reporting period . The deferred outflow being presented represents the difference between the reacquisition price and the carrying value of the System revenue bonds series 2004 which were advance refunded during 2013 . The remaining portion of deferred outflows relates to GASB 68 changes in the pension liability . For 2015, it consisted of the amortization of contributions made after the measurement date .

Deferred Inflows of ResourcesDeferred Inflows of Resources are transactions that result in the acquisition of net assets in one period that are applicable to future periods . The deferred inflow being presented relates to the portion of pension earnings attributable to CWU since the implementation of GASB 68 .

NOTES TO FINANCIAL STATEMENTS (continued)__________________________________________________________________________________________


Unearned RevenuesUnearned revenues include amounts received for tuition and fees and certain auxiliary activities prior to the end of the fiscal year but related to the subsequent accounting period .

Compensated AbsencesEmployee vacation, compensatory time, and sick leave are accrued at year-end for financial statement purposes . The liability and expense incurred are recorded as accrued liabilities in the statement of net position, and as a component of compensation and benefit expense in the statement of revenues, expenses, and changes in net position .

Non-current LiabilitiesNon-current liabilities include: (1) principal amounts of revenue bonds payable, notes payable, and capital lease obligations with contractual maturities greater than one year; (2) estimated amounts for accrued compensated absences and other liabilities that will not be paid within the next fiscal year; and (3) other liabilities that, although payable within one year, are to be paid from funds that are classified as non-current assets .

Net PositionThe university’s net position is classified as follows:

Net Investment in Capital Assets: This represents the university’s total investment in capital assets, net of outstanding debt obligations related to those capital assets . To the extent debt has been incurred but not yet expended for capital assets, such amounts are included as a component of Net Investment in Capital Assets . Deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction, or improvements of those assets or related debt are also included in this component of net position .

Restricted–expendable: Restricted expendable net position includes resources in which the university is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties .

Restricted–non-expendable: Non-expendable restricted net position consists of endowments and similar type funds in which donors or other outside sources have stipulated, as a condition of the gift instrument, that the principal is to be maintained inviolate and in perpetuity and invested for the purpose of producing present and future income, which may either be expended or added to principal .

Unrestricted: The unrestricted component of net position is the net amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position . Unrestricted net position represents resources derived from student tuition and fees, and sales and services of educational departments and auxiliary enterprises . These resources are used for transactions relating to the educational and general operations of the university and may be used at the discretion of the governing board to meet current expenses for any lawful purpose . The auxiliary enterprises are substantially self-supporting activities that provide services for students, faculty, and staff .


__________________________________________________________________________________________NOTES TO FINANCIAL STATEMENTS (continued)

Income TaxesThe university, as a political subdivision of the State of Washington, is excluded from federal income taxes under Section 115(a) of the Internal Revenue Code, as amended . The foundation is exempt from income taxes under Section 501(c)(3) of the Internal Revenue Code .

Classification of RevenuesThe university has classified its revenues as either operating or non-operating revenues according to the following criteria:

Operating revenues: Operating revenues include activities that have the characteristics of exchange transactions, such as (1) student tuition and fees, net of scholarship discounts and allowances; (2) sales and services of auxiliary enterprises, net of discounts and allowances; (3) federal, state, local or private grants and contracts; and (4) interest on institutional student loans .

Non-operating revenues: Non-operating revenues include activities that have the characteristics of non-exchange transactions, such as gifts and contributions, state appropriations, Pell grants, and investment income .

Discounts and AllowancesStudent tuition and fee revenues, and certain other revenues from students, are reported net of discounts and allowances in the statement of revenues, expenses, and changes in net position . Discounts and allowances are the difference between the stated charges for goods and services provided by the university and the amounts that are paid by students and/or third parties making payments on the students’ behalf . Certain governmental grants, such as Pell grants and other federal, state, or non-governmental programs, are recorded as either operating or non-operating revenues in the university’s financial statements . To the extent that revenues from such programs are used to satisfy tuition and fees and other student charges, the university has recorded discounts and allowances .

ReclassificationThe beginning FY 2015 fund balance was restated and decreased due to the implementation of GASB 68, which requires each state employer to account for their proportionate unfunded liability or asset of its pension plans, on the face of the financial statements . This restatement had a material impact on the increase (decrease) in Net Position on the SCRENP of $27 .8 Million and the Unrestricted Fund Balance on the SNP . Below is a reconciliation of total net position as previously reported at June 30, 2014, to the restated net position .

New Accounting Standards AdoptedIn fiscal year 2015, the university adopted and implemented two new accounting standards as follows:

GASB Statement No . 68, Accounting and Financial Reporting for Pensions (GASB 68) which improves financial reporting by state and local governmental pension plans . The university’s FY 2015 beginning unrestricted fund balance on the SNP was changed based on this pronouncement .

GASB Statement No . 71, Pension Transition for Contributions made subsequent to the measurement date an amendment of GASB Statement No. 68 (GASB 71) which addresses issues regarding the application of the transition provisions of Statement No . 68 .



RECLASSIFICATION

Net position at June 30, 2014, as previously reported $ 350,127,376Adoption of GASB Statement No . 68 (27,791,948) ________________ Net position as of July 1, 2014, as restated $ 322,335,428 ________________ ________________

NOTE 2 - CASH AND INVESTMENTS

Cash and investments are managed under the guidance of the university investment policy . Investments are made using the prudent person standard with primary objectives being: (1) safety of principal; (2) liquidity (enabling the university to meet all operating requirements); and (3) return on investment (the objective of attaining a market rate of return through budgetary and economic cycles) .

The university invests or deposits all temporary cash . These investments and time deposits do not result in reductions of the cash balances of the various funds and are considered to be cash equivalents to the funds . These amounts are reported on the statement of net position as part of cash and cash equivalents . Earnings from pool deposits are allocated to the funds owning the cash in proportion to the ending monthly balance in the investment pool .

As of June 30, 2015, the fair market value of cash and investments was $83,715,794 . Of this total, $48,531,403 is cash and cash equivalents with maturity dates of less than 90 days and $35,073,027 is held in investments maturing in more than 90 days . Cash and cash equivalents include: Local Government Investment Pool (LGIP), Bank Demand and Time Deposits, and Petty Cash . Investments maturing in more than 90 days and/or more than a year include: U .S . Government and Non-State Government Securities at fair value, Investments in Equity, and Cash Surrender Value of Life Insurance (Foundation) .

The statement of net position classification of cash and cash equivalents includes all readily available sources of cash such as petty cash, demand deposits, certificates of deposit, and temporary investments . All deposits of the university are insured by the FDIC up to $250,000 and by the Washington Public Deposit Protection Commission for amounts over $250,000 .

The components of cash and investments are specified as follows:

GASB 40, Deposit and Investment Risk Disclosures, became effective for financial statements for periods beginning after June 15, 2004 . It primarily amends existing accounting guidance under GASB 3, Deposits with Financial Institutions, Investments (including Repurchase Agreements), and Reverse Agreements, and under GASB 28, Accounting and Financial Reporting for Securities Lending Transactions . GASB 40 requires the university to disclose, as needed, any deposits and investments that are exposed to risks that have the potential to result in losses . The statement addresses risks related to credit risk, concentration of credit risk, interest rate risk, and foreign currency risk . As an element of interest risk, this statement requires certain disclosures of investments that have fair values that are highly sensitive to changes in interest rates . Deposit and investment policies related to any risks as identified by using this statement also need to be disclosed .


CASH AND INVESTMENTS

Carrying Amount Fair Carrying Amount Fair June 30, 2015 Value June 30, 2014 Value ______________ _____________ _____________ _____________

Local government investment pool (LGIP) $ 33,044,193 $ 33,044,193 $ 26,059,136 $ 26,059,136 U .S . government securities 9,721,997 9,599,159 8,535,634 8,399,112 Investments–money markets 22,100 22,100 35,946 35,946 Investments–bonds 22,243,612 22,445,252 18,480,175 18,758,543 Investments–stocks, mutual funds 3,188,160 3,188,160 2,839,537 2,839,537 ____________ ____________ ____________ ____________ Subtotal $ 68,220,062 $ 68,298,864 $ 55,950,428 $56,092,274

Bank demand and time deposits 15,455,148 15,455,148 29,086,564 29,086,564 Petty Cash 39,648 39,648 55,931 55,931 ____________ ____________ ____________ ____________ Net plant assets $ 83,714,858 $ 83,793,660 $ 85,092,923 $85,234,769 ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________


The disclosures required by this statement follow:

DepositsThe university’s deposits and certificates of deposit are entirely covered by federal depository insurance (FDIC) or by collateral held in a multiple financial institution collateral pool administered by the Washington Public Deposit Protection Commission (PDPC) .

InvestmentsAs of June 30, 2015, the university had the following investments:

As of June 30, 2014, the university had the following investments:

The LGIP is an unrated 2a-7-like pool, as defined by GASB 31 . Accordingly, participants’ balances in the LGIP are not subject to interest rate risk, as the weighted average maturity of the portfolio will not exceed 90 days . Per GASB 40 guidelines, the balances are also not subject to custodial credit risk . The credit (quality) risk of the LGIP is limited as most investments are either obligations of the U .S . government, government-sponsored enterprises, or insured demand deposit accounts and certificates of deposit . Investments or deposits held by the LGIP are all classified as category one risk level investments . They are either insured or held by a third-party custody provider in the LGIP’s name .



INVESTMENTS Fair Value of Investments Held by CWU as an Agent for Other Fair Value of Governments, CWU’s Own Individuals, or Investments Private Entities Total ______________ _________________ _____________

US treasuries* $ 9,599,159 $ – $ 9,599,159Money market* 22,100 – 22,100Bonds* 22,445,252 – 22,445,252Stocks* 3,188,160 – 3,188,160 ____________ ____________ ____________ Total $ 35,254,671 $ 0 $ 35,254,671 ____________ ____________ ____________ ____________ ____________ ____________

INVESTMENTS Fair Value of Investments Held by CWU as an Agent for Other Fair Value of Governments, CWU’s Own Individuals, or Investments Private Entities Total ______________ _________________ _____________

US treasuries* $ 8,399,112 $ – $ 8,399,112Money market* 35,946 – 35,946Bonds* 18,758,543 – 18,758,543Stocks* 2,839,537 – 2,839,537 ____________ ____________ ____________ Total $ 30,033,138 $ 0 $ 30,033,138 ____________ ____________ ____________ ____________ ____________ ____________

Custodial credit risk is the risk that in the event of a failure of the counterparty to an investment transaction, the university would not be able to recover the value of the investment or collateral securities . Of the university’s total position, no funds are exposed to custodial credit risk because of investments being held by the university’s brokerage firm, and by having that brokerage firm also being the counterparty in those particular securities .

* U .S . Bank Private Client Group are a trust company . They manage the investments, but the investments are still in Central Washington University’s name . The U .S . Bank Private Client Group, is insured under the Security Investor’s Protection Corporation . (This protection is to insure in case of loss

of assets due to fraud, etc .)

NOTE 3 - ACCOUNTS RECEIVABLE

Accounts receivable, due from other agencies, and related allowance for uncollectible accounts consist of the following:

NOTE 4 - STUDENT LOANS RECEIVABLE

Student loans are comprised of current, $1,417,111, and non-current, $4,727,236, at June 30, 2015 .

Student loans receivable consisted of the following:

Student loans receivable write-off procedures are the same as regular accounts receivable .



ACCOUNTS RECEIVABLE June 30, 2015 June 30, 2014 _____________ _____________

Student tuition and fees $ 8,213,804 $ 6,756,283Federal, state, and private grants and contracts 4,245,176 4,453,069State appropriations receivable 987,808 987,559Auxiliary enterprises 2,041,429 1,938,740Other student fees 1,811,515 1,479,674Other operating activities 3,485,393 2,927,827 ___________ ___________ Subtotal 20,785,126 18,543,152 ___________ ___________Allowance for doubtful accounts (739,801) (886,804) ___________ ___________ Net accounts receivable $ 20,045,325 $ 17,656,348 ___________ ___________ ___________ ___________

STUDENT LOANS RECEIVABLE June 30, 2015 June 30, 2014 _____________ _____________

Federal Perkins student loans $ 6,109,021 $ 7,302,267Other long-term loans 35,326 230,433 __________ __________ Subtotal 6,144,347 7,532,700 __________ __________Allowance for doubtful accounts – (570) __________ __________ Total student loans receivable $ 6,144,347 $ 7,532,130 __________ __________ __________ __________

NOTE 5 – INVENTORIES

Inventories consisted of the following:

NOTE 6 - FUNDS WITH STATE TREASURER

As of June 30, 2015, the balance invested with the State Treasurer was $3,128,432 . This represents the university’s share of the net earnings of the Normal School Permanent Fund and the building fee portion of tuition, reduced by expenditures for capital projects, non-capitalized facility improvements and maintenance, and debt service incurred over the years (Fund 063), and the balance of licensing revenues held by the State Treasurer (Fund 783) .

The Normal School Permanent Fund, established under RCW 43 .79 .160, is a permanent endowment fund that derives its corpus from the sale of state lands and timber . The investing activities are managed by the State Treasurer’s Office, while the management of land and timber is administered by the Department of Natural Resources . Interest earned from investments is either reinvested or used exclusively for the benefit of Central Washington University, Eastern Washington University, Western Washington University, and The Evergreen State College .



INVENTORIES June 30, 2015 June 30, 2014 _____________ _____________

Enterprise funds $ 1,370,662 $ 1,120,215Internal service funds 492,382 558,846 __________ __________ Total $ 1,863,044 $ 1,979,061 __________ __________ __________ __________

NOTE 7 - CAPITAL ASSETS

Following are the changes in capital assets for the year ended June 30, 2015:

The university has one building out of active service, the Samuelson Union Building . The net book value was $391,760 as of June 30, 2015, $444,835 as of June 30, 2014, and $497,910 as June 30, 2013 . This information is being disclosed according to the provisions of GASB Statement No . 42—Accounting and Financial Reporting for Impairment of Capital Assets and for Insurance Recoveries—which was issued during November 2003, and became effective for fiscal periods beginning after December 15, 2004 .

NOTE 8 - ACCRUED LEAVE LIABILITIES

Upon termination of employment, employees may receive cash payment for all accumulated vacation and compensatory time . Employees who retire receive 25 percent of the value of their accumulated sick leave credited to a Voluntary Employees’ Beneficiary Association (VEBA) account, which can be used for future medical expenses or insurance purposes . The amounts of unpaid vacation and compensatory time accumulated by university employees are accrued as expenses when incurred .

The amounts represent a liability to the university and are recorded and reported accordingly . The sick leave liability is recorded as an actuarial estimate of one-fourth the total balance on the payroll records . The amount of compensated time, vacation, and sick leave paid during fiscal year 2015 totaled $3,807,948 . The accrued compensated time balance as of June 30, 2015, was $ 17,731 .



CAPITAL ASSETS

Balance at Balance at Balance at June 30, 2013 Additions Retirements June 30, 2014 Additions Retirements June 30, 2015 ______________ _____________ _____________ _____________ _____________ _____________ _____________

Non-depreciable capital assets Land $ 4,801,900 $ – $ – $ 4,801,900 $ – $ – $ 4,801,900 Artworks 100,350 – – 100,350 112,644 – 212,994 Library resources collectibles 38,122 – – 38,122 – – 38,122 Construction in progress 5,890,345 14,274,923 83,710 20,081,558 30,967,612 12,899,692 38,149,478 ____________ ____________ ____________ ____________ ____________ ____________ ____________ Subtotal 10,830,717 14,274,923 83,710 25,021,930 31,080,256 12,899,692 43,202,494

Depreciable capital assets Buildings 417,551,710 206,270 – 417,757,973 447,031 – 418,205,011 Improvements and infrastructure 91,472,041 1,009,211 – 92,481,252 12,506,583 – 104,987,835 Equipment 31,181,032 1,519,813 926,319 31,774,529 1,025,777 332,650 32,467,656 Leased equipment 1,496,424 – – 1,496,424 – – 1,496,424 Buildings - perpetuity rights 30,792,094 – – 30,792,094 – – 30,792,094 Library resources (depreciable) 27,199,189 643,555 131,825 27,710,918 634,666 8,250 28,337,334 ____________ ____________ ____________ ____________ ____________ ____________ ____________ Subtotal 599,692,490 3,378,851 1,058,143 602,013,197 14,614,313 340,900 616,286,354 ____________ ____________ ____________ ____________ ____________ ____________ ____________ Total capital assets 610,523,207 17,653,774 1,141,853 627,035,127 45,694,313 13,240,592 659,488,848 ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________

Less accumulated depreciation Buildings 110,299,560 8,335,132 – 118,634,693 8,329,923 – 126,964,616 Improvements and infrastructure 47,473,380 3,473,975 – 50,947,355 3,591,066 – 54,538,421 Library resources 20,598,229 2,343,585 – 22,941,814 699,779 – 23,641,593 Equipment 25,622,493 2,000,122 916,354 26,706,261 1,825,255 308,447 28,223,039 Leased equipment 1,496,424 – – 1,496,424 – – 1,496,424 Amortized perpetuity rights - buildings 7,006,927 794,918 – 7,801,845 794,917 – 8,596,762 ____________ ____________ ____________ ____________ ____________ ____________ ____________ Total accumulated depreciation 212,497,013 16,947,732 916,354 228,528,392 15,240,940 308,477 243,460,855 Capital assets, ____________ ____________ ____________ ____________ ____________ ____________ ____________ net of depreciation $ 398,026,194 $ 706,042 $ 225,499 $ 398,506,735 $ 30,453,373 $ 12,932,115 $ 416,027,993 ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________

NOTE 9 - LONG-TERM LIABILITIES

Long-term liability activity for the two-year period ended June 30, 2015, is summarized as follows:

Additional information regarding bonds payable is included in Note 11 . Additional information regarding capital lease obligations is included in Note 13 .

NOTE 10 – OTHER POST-EMPLOYMENT BENEFITS

During fiscal year 2008, the university adopted GASB Statement No .45—Accounting and Financial Reporting by Employers for Post-employment Benefits Other than Pensions . This statement establishes standards for the measurement, recognition, and display of other post-employment benefits (OPEB) expenditures and related liabilities (assets), note disclosures, and required supplementary information in the financial reports of state and local government employers .

Health care and life insurance programs for employees of the State of Washington are administered by the Washington Health Care Authority (HCA) . The HCA calculates the premium amounts each year that are sufficient to fund the statewide health and life insurance programs on a pay as you go basis . These costs are passed through to individual state agencies based upon active employee headcount; the agencies pay the premiums for active employees to the HCA .

State of Washington retirees may elect coverage through state health and life insurance plans, for which they pay less than the full cost of the benefits, based on their age and other demographic factors .

The health care premiums for active employees, which are paid by the agency during employees’ working careers, subsidize the “underpayments” of retirees . An additional factor in the OPEB obligation is a payment that is required by the State Legislature to reduce the premiums for retirees covered by Medicare (an “explicit” subsidy) . This is also passed through to state agencies via active employee rates charged to the agency .

There is no formal state or university plan that underlies the subsidy of retiree health and life insurance .



LIABILITIES Current Long-Term June 30, 2014 Additions Reductions June 30, 2015 Portion Portion _____________ ____________ ____________ _____________ ____________ ____________

Accrued liabilities $ 10,322,732 $ 11,839,984 $ 3,134,628 $ 19,028,088 $ 9,933,287 $ 5,224,264State Pension liability – 21,707,787 – 21,707,787 – 21,707,787CWU Pension liability 3,334,988 535,549 – 3,870,537 – 3,870,537Bond Premium/Discount 4,378,860 – – 4,120,195 203,083 3,917,112Leases/contracts payable 4,400,000 – 360,000 4,040,000 360,000 3,680,000Bonds payable 128,315,000 – 3,925,000 124,390,000 3,915,000 120,475,000 _____________ _____________ _____________ _____________ _____________ _____________

Total $ 150,751,580 $ 34,083,320 $ 7,419,628 $ 177,156,607 $ 14,411,370 $ 158,874,700 _____________ _____________ _____________ _____________ _____________ _____________ _____________ _____________ _____________ _____________ _____________ _____________

Current Long-Term June 30, 2013 Additions Reductions June 30, 2014 Portion Portion _____________ ____________ ____________ _____________ ____________ ____________

Construction A/P $ 1,126,840 $ – $ – $ 1,126,840 $ – $ 1,126,840Accrued liabilities 10,412,305 664,642 754,215 10,322,732 8,512,512 1,810,220Pension liability 2,751,645 583,343 – 3,334,988 – 3,334,988Bond premium/discount 4,593,348 – 214,488 4,378,860 – 4,378,860Leases/contracts payable 4,755,000 – 355,000 4,400,000 360,000 4,040,000Bonds payable 131,985,000 – 3,670,000 128,315,000 3,925,000 124,390,000 _____________ _____________ _____________ _____________ _____________ _____________

Total $ 155,624,138 $ 1,247,985 $ 4,993,703 $ 151,878,420 $ 12,797,512 $ 139,080,908 _____________ _____________ _____________ _____________ _____________ _____________ _____________ _____________ _____________ _____________ _____________ _____________

NOTE 11 - BONDS PAYABLE

State law requires that the university reimburse the State annually for debt service payments relating to the State of Washington General Obligation Bonds from tuition, timber sales, and earnings on investments held by the State Treasurer . Bonds payable at June 30, 2015, consisted of bonds issued by the State of Washington and Central Washington University .

Maturity InformationThe scheduled maturities of the general obligation and system revenue bonds are as follows:


BONDS PAYABLE Interest Original Balance Balance Rate % Issue June 30, 2015 June 30, 2014 __________ _____________ ______________ ______________

State of Washington general obligation bonds Series 1994A (HE-CWU) 4 .95 $ 4,455,000 $ 385,000 $ 750,000 Series R-2013C (HE-CWU) 3 .00 - 5 .00 1,225,000 1,225,000 1,225,000System revenue bonds Series 2008 bonds (Wendell Hill Hall) 3 .00 - 5 .00 36,495,000 32,020,000 32,835,000 Series 2010 bonds (Barto Hall Series A) 2 .26 – 3 .24 2,515,000 2,515,000 2,515,000 Series 2010 bonds (Barto Hall Series B) 1 .50 – 6 .95 31,950,000 29,770,000 30,505,000 Series 2012 bonds (Kamola Hall Refunding) 2 .00 – 3 .80 7,665,000 6,760,000 7,070,000 Series 2013 bonds (SUB/REC–Sue Lombard) 3 .13 – 5 .00 53,415,000 51,715,000 53,415,000 ____________ ____________ ____________ Total bonds payable $ 201,800,000 $ 124,390,000 $ 128,315,000 ____________ ____________ ____________

Bond discounts and issuance costs (694,244) (727,072)Bond premium 4,120,195 4,378,860 ____________ ____________ ____________

Total $ 201,800,000 $ 127,815,951 $ 131,966,788 ____________ ____________ ____________ ____________ ____________ ____________

DEBT SERVICE REQUIREMENTS

General Obligation Bonds System Revenue Bonds _____________________________________ _____________________________________

Fiscal Year Principal Interest Sub Total Principal Interest Sub Total Total____________ ___________ __________ __________ ___________ __________ __________ ___________

2016 $ 385,000 $ 72,700 $ 457,700 $ 3,515,000 $ 5,816,755 $ 9,331,755 $ 9,789,4552017 390,000 53,450 443,450 3,675,000 5,658,905 9,333,905 9,777,3552018 410,000 41,750 451,750 3,845,000 5,493,705 9,338,705 9,790,4552019 425,000 21,250 446,250 4,010,000 5,318,730 9,328,730 9,774,9802020 – – – 4,770,000 5,136,105 9,906,105 9,906,1052021 – 2025 – – – 24,660,000 22,262,815 46,922,815 46,922,8152026 – 2030 – – – 32,655,000 16,117,987 48,772,987 48,772,9872031 – 2035 – – – 30,745,000 8,655,723 39,400,723 39,400,7232036 – 2040 – – – 14,905,000 2,488,297 17,393,297 17,393,2972041 – 2045 – – – – – – – __________ _________ __________ ____________ ____________ ____________ ____________ Total $ 1,610,000 $ 189,150 $ 1,799,150 $ 122,780,000 $ 76,949,022 $ 199,729,022 $ 201,528,175 __________ _________ __________ ____________ ____________ ____________ ____________ __________ _________ __________ ____________ ____________ ____________ ____________

University




Debt Service RequirementsCentral Washington University System Bonds, Series 2004, issued in the original amount of $64,080,000 and mature in varying annual amounts to May 1, 2034 . A principal payment of $1,505,000 was required and paid during Fiscal 2014 . No principal payment was scheduled for fiscal 2015 . The advance refunding of the series 2004 bonds resulted in the recognition of a deferred outflow of $2 .5 million (the difference between the net carrying amount of the old bonds and the reacquisition price of the new), that is being amortized over the life of the bonds .

Central Washington University System Bonds, Series 2008, issued in the original amount of $36,495,000 and mature in varying annual amounts to May 1, 2038 . A principal payment of $815,000 was required and paid during Fiscal 2015 . A principal payment of $845,000 is scheduled for May 1, 2016 .

Central Washington University System Bonds, Series 2010 A, tax exempt issued in the original amount of $2,515,000 and Series 2010 B taxable Build America Bonds issued in the original amount of $31,950,000 maturing in varying annual amounts to May 1, 2040 . A principal payment of $735,000 was scheduled and paid during Fiscal 2015 . No principal payment is scheduled for fiscal year 2016 .

The Central Washington University System Bonds of 2010 series B were issued under the American Recovery Act of 2008 Build America Bond Program as taxable bonds . Under this program the university expects to receive a subsidy from the United States federal government of 35% of interest paid through maturity . The subsidy received during fiscal 2015 was $630,674 . This amount is shown as non-operating revenue on the Statement of Revenue, Expenses and Changes in Net Assets . No principal payment was scheduled for Fiscal 2015 . A principal payment of $585,000 is scheduled for May 1, 2016 .

Central Washington University System Bonds, Series 2012, issued in the original amount of $7,655,000 and mature in varying annual amounts to May 1, 2032 . Principal and interest on these revenue bonds are collateralized by a pledge of revenues . A principal payment of $310,000 was required and paid during Fiscal 2015 . A principal payment of $315,000 is scheduled for May 1, 2016 .

Central Washington University System Bonds, Series 2013, issued in the original amount of $53,415,000 and mature in varying annual amounts to May 1, 2034 . Principal and interest on these revenue bonds are collateralized by a pledge of revenues . No principal payment was required during Fiscal 2014 . A principal payment of $1,700,000 was required and paid of scheduled during 2015 . A principal payment of $1,770,000 is scheduled for May 1, 2016 .

NOTE 12 – LEASES/CONTRACTS PAYABLE

In August 2002, the university entered a 20-year lease/purchase agreement for $5,145,000 with the Office of the State Treasurer to pay for a portion of an instructional building at Edmonds Community College to house the CWU-Lynnwood Center . Average annual payments are $384,000 to be paid from tuition revenues for 20 years . Under the terms of the project contract, Edmonds Community College receives ownership of the building and Central Washington University has a tenant right in perpetuity .

On March 29, 2012 the State of Washington in conjunction with the Certificate of Participation (COP) program issued $3,345,000 in Washington General Obligation Bonds with an average interest rate of 2 .28% on behalf of the university to defease $3,350,000 in General Obligation Bonds with an average interest rate of 4 .37% issued on August 15, 2002 . This refunding will save the university $341,851 over the remaining life of the lease . The university made it’s required principal payment in fiscal year 2012 of $230,000 prior to the refunding .



On March 19, 2013 the State of Washington in conjunction with the Certificate of Participation (COP) program issued $1,660,000 in Washington General Obligation Bonds with an average interest rate of 2 .53% on behalf of the university to fund the Central Washington University Boiler Stack Heat Recovery Project . Anticipated savings through reduced energy costs once the project is completed will be the source of funding to make the COP payments .

Leases/Contracts Payable for the two-year period ended June 30, 2015:

The university’s lease and contracts payable payments for the next five years and thereafter are as follows:

NOTE 13 - RETIREMENT PLANS

The university participates in eight contributory retirement plans: the Central Washington University Retirement Plan (CWURP), a defined contribution retirement plan with supplemental payment, when required; the Public Employees Retirement System (PERS) plans 1, 2, and 3; the Teachers Retirement System (TRS) plans 1, 2, and 3; and the Law Enforcement Officers and Fire Fighters (LEOFF) plan 2 .

A. Central Washington University Retirement Plan:

Plan Description: Faculty, civil service exempt staff, and other salaried employees are eligible to participate in the Central Washington University Retirement Plan, a defined contribution plan administered by the university . Contributions to the plan are invested in annuity contracts or mutual fund accounts . Employees have, at all times, a 100 percent vested interest in their accumulations .

Benefits from fund sponsors are available upon separation or retirement at the member’s option . RCW 28 .B .10 .400 assigns the authority to establish and amend benefit provisions to the Central Washington University board of trustees .

The plan has a supplemental payment component, which guarantees a minimum retirement benefit to eligible retirees based upon a one-time calculation at the employee’s retirement date . The university makes direct payments to qualifying retirees when the retirement benefits provided by the fund sponsors do not meet the benefit goals .

Original Balance BalanceContract # Contract Name % Rate Issue June 30, 2015 June 30, 2012__________ ____________________________ _______ ___________ _____________ _____________

S375-11-1 Edmonds COP 2012 2 .28 $ 3,345,000 $ 2,540,000 $ 2,820,000S375-12-1 Heat Recovery Project COP 2013 2 .53 1,660,000 1,500,000 1,660,000 __________ __________ __________

Total $ 5,005,000 $ 4,040,000 $ 4,400,000 __________ __________ __________ __________ __________ __________

Fiscal Year Principal Interest Total__________ __________ __________ _________

2016 $ 375,000 $ 130,950 $ 505,9502017 385,000 121,150 506,1502018 400,000 110,525 510,5252019 405,000 98,075 503,0752020 420,000 83,750 503,7502021 – 2025 1,620,000 211,175 1,831,1752026 – 2029 435,000 21,275 456,275 __________ __________ __________ Total $ 4,040,000 $ 776,900 $ 4,816,900 __________ __________ __________ __________ __________ __________



Funding Policy: Employee contribution rates, based on age, are 5 percent, 7 .5 percent, or 10 percent of salary . The university matches the contributions of employees . Within parameters established by the legislature, contribution requirements may be established or amended by Central Washington University’s board of trustees . Employee and employer contributions for the year ended June 30, 2015, were $4,542,013 and $4,542,117 respectively .

The supplemental payment component of the Central Washington University Retirement Plan is financed on a pay-as-you-go basis . The annual required contribution for fiscal year 2015 was $855,000 .

CWU Supplemental Retirement Plan Disclosure Supplemental Component (Unaudited): The university received an actuarial evaluation of the supplemental component of the CWURP for fiscal year 2015 . The previous evaluation was performed in 2013 . The Unfunded Actuarial accrued Liability (UAL) calculated as of June 30, 2015 and 2013, was $6,811,000 and $7,657,000 respectively, and is amortized over an 11 year period . The Annual Required Contribution (ARC) of $855,000 consists of amortization of the UAL ($737,000) and normal cost (or current cost) ($118,000) . The UAL and ARC were established using the entry age normal cost method . The actuarial assumptions included an investment rate of return of 4 .25 percent and projected salary increases ranging from 2 percent to 4 percent . Approximately $11,640,657 and $13,399,251 of CWU’s payroll were covered under this plan during 2015 and 2013, respectively . The following table reflects the activity in the Net Pension Obligation (NPO) for the year ended June 30, 2015:

CWU reported the NPO balance as a long-term liability .

NET PENSION OBLIGATION

Balance as of June 30, 2012 $ 2,143,796Annual required contribution fiscal year 2013 894,000Payments to beneficiaries fiscal year 2013 (286,151) __________Balance as of June 30, 2013 2,751,645Annual required contribution fiscal year 2014 894,000Payments to beneficiaries fiscal year 2014 (310,657) __________Balance as of June 30, 2014 3,334,988Annual required contribution fiscal year 2015 855,000Payments to beneficiaries fiscal year 2015 (319,451) __________ Balance as of June 30, 2015 $ 3,870,537 __________ __________



B. Public Employees Retirement System plans 1, 2, and 3; Teachers Retirement Systems plans 1, 2, and 3; Law Enforcement Officers and Fire Fighters plan 2:

Plan Description: Central Washington University contributes to PERS, TRS, and LEOFF; cost-sharing multiple-employer defined benefit pension plans administered by the Washington State Department of Retirement Systems .

PERS plan 1 and TRS plan 1 provide retirement and disability benefits, and minimum benefit increases, beginning at any age with 30 years of service, or at age 55 with 25 years of service, or at age 60 with five years of service to eligible members hired prior to October 1, 1977 .

PERS plan 2 and TRS plan 2 provide retirement and disability benefits, and a cost-of-living allowance, beginning at age 65 with five years of service, or an actuarially reduced benefit beginning at age 55 with 20 years of service, to eligible members hired on or after October 1, 1977 .

LEOFF plan 2 provides retirement and disability benefits, and a cost-of-living allowance, beginning at age 53 with five years of service, or an actuarially reduced benefit beginning at age 50 with 20 years of service, to eligible law enforcement officer members hired on or after October 1, 1977 .

PERS plan 3 and TRS plan 3 are hybrid defined-benefit and defined-contribution plans . University contributions fund the defined benefit component, providing retirement and disability benefits, and a cost-of-living allowance, beginning at age 65 with minimum service requirements, or an actuarially reduced benefit at age 55 with at least 10 years of service, to eligible members hired on or after July 1, 1996, and those who transferred from PERS plan 2 and TRS plan 2 . Member contributions are fully vested in the defined contribution component of the plan and funds are available at separation or retirement at the member’s option . The authority to establish and amend benefit provisions for PERS, TRS, and LEOFF plans resides with the legislature . The Washington State Public Employees Retirement System issues a publicly available financial report that includes financial statements and required supplementary information . The report may be obtained by writing to the Department of Retirement Systems, P .O . Box 48380, Olympia, Washington 98504-8380 .

Funding Policy: The office of the State Actuary, using funding methods prescribed by statute, determines actuarially required contribution rates for PERS, TRS, and LEOFF . Plan 1 members are required by statute to contribute 6 percent of their annual covered salary . Contributions for Plan 2 members are determined by the aggregate method and may vary over time . Plan 3 members elect their contribution rate at employment from both flat and aggregated rate plans varying from 5 percent to 15 percent of annual covered salary . The contribution rates at June 30, 2015 were as follows:

PERS, TRS, AND LEOFF CONTRIBUTION RATES

2015 2014 2013 ________________________ ________________________ ________________________Plan Member University Member University Member University__________ __________ __________ __________ __________ __________ __________

PERS I 6 .00% 9 .21% 6 .00% 9 .21% 6 .00% 7 .21%PERS II 4 .92% 9 .21% 4 .92% 9 .21% 4 .64% 7 .21%PERS III VARIOUS 9 .21% VARIOUS 9 .21% VARIOUS 7 .21%LEOFF II 8 .41% 8 .59% 8 .41% 8 .59% 8 .46% 8 .62%TRS I 6 .00% 10 .39% 6 .00% 10 .39% 6 .00% 8 .05%TRS II 4 .96% 10 .39% 4 .96% 10 .39% 4 .69% 8 .05%TRS III VARIOUS 10 .39% VARIOUS 10 .39% VARIOUS 8 .05%



University and member contributions for the current year and two previous years were as follows:

NOTE 14 – PENSION LIABILITY

During fiscal year 2015, the university adopted GASB Statement No .68—Accounting and Financial Reporting for Pensions . These changes in accounting policies for pensions are designed to improve transparency regarding pension obligations by requiring recognition of a liability equal to the net pension liability for the university’s proportionate share of the Department of Retirement Systems (DRS) defined benefit plans . This standard requires recognition of pension expense using a systematic method, designed to match the cost of pension benefits with service periods for eligible employees, and to assist in paying for PERS1 and TRS1 future retiree costs . Because this was to be retroactively implemented, CWU also restated its beginning 2015 fund balance . The CWU financial data is now presented in accordance with the new accounting standards described above .

PERS, TRS, LEOFF, AND CWURP CONTRIBUTIONS

2015 2014 2013 ________________________ ________________________ ________________________Plan Member University Member University Member University__________ __________ __________ __________ __________ __________ __________

PERS I $ 59,899 $ 91,944 $ 61,383 $ 94,193 $ 81,191 $ 97,563PERS II 1,022,456 1,913,986 976,911 1,827,351 929,777 1,444,775PERS III 543,255 776,066 463,734 671,790 427,802 486,162LEOFF II 73,555 75,129 70,609 72,094 70,166 71,493TRS I 3,043 5,270 7,836 13,516 15,364 20,612TRS II 8,528 17,864 9,685 19,827 9,489 16,285TRS III 84,290 115,847 74,025 109,981 60,432 64,486CWURP 4,542,013 4,542,117 4,308,849 4,308,849 4,232,302 4,232,424 __________ __________ __________ __________ __________ __________ Total $ 6,337,039 $ 7,538,223 $ 5,973,032 $ 7,117,601 $ 5,826,522 $ 6,433,801 __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________



Actuarial AssumptionsThe total pension liability (TPL) for each of the CWU DRS plans was determined using the most recent actuarial valuation completed in 2015 with a valuation date of June 30, 2014 . The actuarial assumptions used in the valuation were based on the results of the Office of the State Actuary’s (OSA) 2007-2012 Experience Study .

Additional assumptions for subsequent events and law changes are current as of the 2014 actuarial valuation report . The TPL was calculated as of the valuation date and rolled forward to the measurement date of June 30, 2015 . Plan liabilities were rolled forward from June 30, 2014, to June 30, 2015, reflecting each plan’s normal cost (using the entry-age cost method), assumed interest and actual benefit payments .

• Inflation: 3% total economic inflation; 3 .75% salary inflation• Salary increases: In addition to the base 3 .75% salary inflation assumption, salaries are also expected to grow by promotions and longevity .• Investment rate of return: 7 .5%

Mortality rates were based on the RP-2000 report’s Combined Healthy Table and Combined Disabled Table, published by the Society of Actuaries . The OSA applied offsets to the base table and recognized future improvements in mortality by projecting the mortality rates using 100 percent Scale BB . Mortality rates are applied on a generational basis; meaning, each member is assumed to receive additional mortality improvements in each future year throughout his or her lifetime .

There were minor changes in methods and assumptions since the last valuation .

• The OSA updated demographic assumptions, consistent with the changes from the 2007-2012 Experience Study Report, used when valuing the PERS 1 and TERS 1 Basic Minimum COLA .• The OSA corrected how valuation software calculates a member’s entry age under the entry age normal actuarial cost method . Previously, the funding age was rounded, resulting in an entry age one year higher in some cases .• For purposes of calculating the Plan 2/3 Entry Age Normal Cost contribution rates, the OSA now uses the current blend of Plan 2 and Plan 3 salaries rather than using a long-term membership assumption of two-thirds Plan 2 members and one-third Plan 3 members .• The OSA changed the way it applies salary limits, as described in the 2007-2012 Experience Study Report .

Discount RateThe discount rate used to measure the total pension liability for all CWU DRS plans was 7 .5 percent .

To determine that rate, an asset sufficiency test included an assumed 7 .7 percent long-term discount rate to determine funding liabilities for calculating future contribution rate requirements . (All plans use 7 .7 percent except LEOFF 2, which has assumed 7 .5 percent) . Consistent with the long-term expected rate of return, a 7 .5 percent future investment rate of return on invested assets was assumed for the test . Contributions from plan members and employers are assumed to continue being made at contractually required rates (including PERS 2/3, PSERS 2, SERS 2/3, and TRS 2/3 employers, whose rates include a component for the PERS 1, and TRS 1 plan liabilities) . Based on these assumptions, the pension plans’ fiduciary net position was projected to be available to make all projected future benefit payments of current plan members . Therefore, the long-term expected rate of return of 7 .5 percent was used to determine the total liability .

Long-Term Expected Rate of ReturnThe long-term expected rate of return on the DRS pension plan investments of 7 .5 percent was determined using a building-block-method . The Washington State Investment Board (WSIB) used a best estimate of expected future rates of return (expected returns, net of pension plan investment expense, including inflation) to develop each major asset class . Those expected returns make up one component of WSIB’s capital market assumptions . The WSIB uses the capital market assumptions and their target asset allocation to simulate future investment returns at various future times . The long-term expected rate of return of 7 .5 percent approximately equals the median of the simulated investment returns over a 50-year time horizon .



Estimated Rates of Return by Asset ClassBest estimates of arithmetic real rates of return for each major asset class included in the pension plan’s target asset allocation as of June 30, 2015, are summarized in the table below . The inflation component used to create the table is 2 .2 percent and represents the WSIB’s most recent long-term estimate of broad economic inflation .

Sensitivity of NPLThe table below presents CWU’s proportionate share of the net pension liability calculated using the discount rate of 7 .5 percent, as well as what CWU’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower (6 .5 percent) or 1-percentage point higher (8 .5 percent) than the current rate .

Asset Class Budgeted Actual___________ ___________ _________

Fixed Income 20% 1 .70%Tangible Assets 5% 4 .40%Real Estate 15% 5 .80%Global Equity 37% 6 .60%Private Equity 23% 9 .60% ___________ 100%

CHART 14A

(6.5%) (7.5%) (8.5%) ________________ ________________ ______________

PERS 1 $ 17,809,552 $ 14,448,793 $ 11,563,912PERS 2/3 28,285,220 6,781,052 (9,644,130)TRS 1 1,375,002 1,068,489 805,388TRS 2/3 886,652 102,007 (482,218)LEOFF 2 297,229 (694,553) (1,438,821)

1% Decrease Current

Discount Rate 1% Increase



Central Washington University Retirement BenefitsSubstantially all full-time classified employees at CWU participate in the DRS retirement plans . CWU has a financial responsibility for pension benefits associated with its defined benefit plans, and the University’s financial statements for 2015 have been updated to include the University’s proportionate share of the State’s pension liability . Pension liability is allocated to multiple funds, based on their proportionate share of covered compensation for the fiscal year .

Prior to adopting the pension accounting changes, CWU reported pension expense based on cash contributions to DRS . All state employers are required to contribute at a rate set by The Washington State legislature . Employer contribution rates were 9 .21 percent for PERS, 10 .39 percent for TRS and 8 .59 percent for LEOFF2 in 2014 and 2015 . The Legislature approved increasing the employer contribution rate to 11 .18 percent for PERS in 2016 . These pension accounting changes do not impact the university’s requirements for making contributions to DRS . The following table represents the aggregate effect of the pension accounting entries for all plans subject to the requirements of GASB 68 for CWU as an employer, for fiscal year 2015 .

The universities aggregate entries from GASB 68 for FY 2015 are as follows:

The following table is CWU’s proportionate share of the Net Pension Liability, by Plan for FY2015:

The LEOFF2 plan has a Net Pension Asset . The following table is CWU’s proportionate share of the NPA for 2015:

CHART 14B - AGGREGATE GASB 68 ENTRIES

Pension liabilities $ 21,705,788Less pension expense/expenditures 3,260,375Plus deferred in-flows of resources related to pensions 9,783,658Less deferred out-flows of resources related to pensions 437,122 ____________ Net decrease in fund balance (GASB 68) $ 27,791,948 ____________

CHART 14C PERS 1 PERS 2/3 TRS 1 TRS 2/3 ___________ ___________ ___________ ___________

CWU employers proportion of the Net Pension Liability .286822% .335470% .036227% .031582%CWU employers proportionate share of the NPL (discount rate = 7 .5%) $ 14,448,793 $ 6,781,052 $ 1,068,489 $ 102,007CWU employers’ covered employee payroll per plan $ 1,286,177 $ 28,872,627 $ 134,767 $ 1,387,876CWU employers’ proportionate share of the NPL as a % of its covered payroll 1123 .39% 23 .49% 792 .84% 7 .35%Plan fiduciary net position as a percentage of the total pension liability 68 .80% 54 .18% 5 .4578% 0 .223%

CHART 14C LEOFF2 ___________

CWU employers proportion of the Net Pension Asset . .052338%CWU employers proportionate share of the NPA(discount rate = 7 .5%) $ 694,553CWU employers’ covered employee payroll per plan $ 873,737CWU employers’ proportionate share of the NPA as a % of its covered payroll (84 .27)%Plan fiduciary net position as a % of the total pension asset: .62%



The amount of the liability/(asset) reported above for the five plans, reflects a reduction for State pension support provided to CWU . The amount recognized by CWU as its proportionate share of the net pension liability/(asset), the related State support, and the total portion of the net pension liability/(asset) that was associated with CWU were as follows:

At June 30, CWU’s proportionate share of the collective net pension liabilities was as follows:

At June 30, CWU’s proportionate share of the collective net pension asset was as follows:

Employer contribution transmittals received and processed by the DRS for the fiscal year ended June 30 are used as the basis for determining each employer’s proportionate share of the collective pension amounts reported by the DRS in the Schedules of Employer and Nonemployer Allocations for all plans .

The Legislature, by means of a special funding arrangement, appropriates money from the state General Fund to supplement the current service liability and fund the prior service costs of Plan 2 in accordance with the recommendations of the Pension Funding Council and the LEOFF Plan 2 Retirement Board . This special funding situation is not mandated by the state constitution and could be changed by statute . For the state fiscal year ending June 30, 2015, the state contributed $58,339,032 to LEOFF Plan 2 .

CHART 14D - LIABILITY PERS 1 PERS 2/3 TRS 1 TRS 2/3 _________________ _________________ _________________ _________________

Employers proportionate share of Plan Liability $ 5,023,198,207 $ 2,014,579,948 $ 2,948,385,511 $ 322,886,993State’s proportionate share of NPL associatedwith the employer 14,448,793 6,781,052 1,068,489 102,007 _________________ _________________ _________________ _________________ Total $ 5,037,547,000 $ 2,021,361,000 $ 2,949,454,000 $ 322,989,000 _________________ _________________ _________________ _________________ _________________ _________________ _________________ _________________

CHART 14D - ASSET LEOFF2 _______________

Employers proportionate share of Plan Asset . $ 1,326,348,447State’s proportionate share of NPA associated with employer 694,553 _______________ Total $ 1,327,043,000

CHART 14E

June 30, 2014 June 30, 2015 Proportion ________________ ________________ __________

PERS 1 0 .277612% 0 .2868220% 0 .0092100%PERS 2/3 0 .320694% 0 .3354696% 0 .0147757%TRS 1 0 .035596% 0 .036227% 0 .0006303%TRS 2/3 0 .020614% 0 .0315823% 0 .0109682%

ProportionateShare Change in

ProportionateShare

CHART 14E

June 30, 2014 June 30, 2015 Proportion ________________ ________________ ______________

LEOFF 2 0 .051000% 0 .0523384% 0 .0013379%

ProportionateShare Change in

ProportionateShare

In fiscal year 2015, the state of Washington contributed 39 .80 percent of LEOFF 2 employer contributions pursuant to RCW 41 .27 .726 and all other employers contributed the remaining 60 .20 percent of employer contributions . The collective net pension liability/(asset) was measured as of June 30, 2015, and the actuarial valuation date on which the total pension liability/(asset) is based was as of June 30, 2014, with update procedures used to roll forward the total pension liability to the measurement date .

Pension ExpenseFor the year ended June 30, 2015, the (city/county/district) recognized pension expense as follows:

Deferred Outflows of Resources and Deferred Inflows of ResourcesAt June 30, 2015, CWU reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:



CHART 14F - PENSION EXPENSE

Pension Expense ________________

PERS 1 $ 1,321,489PERS 2/3 1,719,025TRS 1 71,202TRS 2/3 188,779LEOFF 2 (40,121) ________________ Total $ 3,260,375 ________________ ________________

CHART 14G - PERS 1 Deferred Outflows Deferred Inflows of Resources of Resources ____________________ ____________________

Differences between expected and actual experience 0 0Net difference between projected and actual investment earnings on pension plan investments 0 $ 1,806,741Changes of assumptions 0 0Change in proportion and differences between contributions and proportionate share of contributions $ 538,164 0Contributions subsequent to the measurement date 0 0 ____________________ ____________________ Total $ 538,164 $ 1,806,741 ____________________ ____________________ ____________________ ____________________

CHART 14G - PERS 2/3 Deferred Outflows Deferred Inflows of Resources of Resources ____________________ ____________________

Differences between expected and actual experience 0 0Net difference between projected and actual investment earnings on pension plan investments 0 $ 7,187,976Changes of assumptions 0 0Change in proportion and differences between contributions and proportionate share of contributions $ 630,923 0Contributions subsequent to the measurement date 0 0 ____________________ ____________________ Total $ 630,923 $ 7,187,976 ____________________ ____________________ ____________________ ____________________



CHART 14G - TRS 1 Deferred Outflows Deferred Inflows of Resources of Resources ____________________ ____________________

Differences between expected and actual experience 0 0Net difference between projected and actual investment earnings on pension plan investments 0 $ 187,364Changes of assumptions 0 0Change in proportion and differences between contributions and proportionate share of contributions $ 22,263 0Contributions subsequent to the measurement date 0 0 ____________________ ____________________ Total $ 22,263 $ 187,364 ____________________ ____________________ ____________________ ____________________

CHART 14G - TRS 2/3 Deferred Outflows Deferred Inflows of Resources of Resources ____________________ ____________________

Differences between expected and actual experience 0 0Net difference between projected and actual investment earnings on pension plan investments 0 $ 234,087Changes of assumptions 0 0Change in proportion and differences between contributions and proportionate share of contributions $ 120,282 0Contributions subsequent to the measurement date 0 0 ____________________ ____________________ Total $ 120,282 $ 234,087 ____________________ ____________________ ____________________ ____________________

CHART 14G - LEOFF 2 Deferred Outflows Deferred Inflows of Resources of Resources ____________________ ____________________

Differences between expected and actual experience 0 0Net difference between projected and actual investment earnings on pension plan investments 0 $ 367,489Changes of assumptions 0 0Change in proportion and differences between contributions and proportionate share of contributions $ (5,590) 0Contributions subsequent to the measurement date 0 0 ____________________ ____________________ Total $ (5,590) $ 367,489 ____________________ ____________________ ____________________ ____________________



CWU calculated the amortization schedules of the net deferred inflows and outflows for each plan . The recognition period for each plan is equal to the average of the expected remaining service lives of all employees provided with pensions through the pension plan, as provided by OFM . The following schedules show the change in proportionate share of the various pension plans, which is recognized as a deferred outflow, and the difference in the projected earnings of the various plans which is recognized as a deferred inflow, along with the accompanying amortization schedules for outflows and inflows .

CWU calculated the amortization schedules of the net deferred inflows and outflows for each plan . The recognition period for each plan is equal to the average of the expected remaining service lives of all employees provided with pensions through the pension plan, as provided by OFM . The following schedules show the change in proportionate share of the various pension plans, which is recognized as a deferred outflow, and the difference in the projected earnings of the various plans which is recognized as a deferred inflow, along with the accompanying amortization schedules for outflows and inflows .

AMORTIZATION OF IN-FLOWS

PERS 1 PERS 2-3 TRS 1 TRS 2-3 LEOFF 2 ______________ ______________ ______________ ______________ ______________2016 (361,348) (1,437,595) (37,473) (39,015) (57,420)2017 (361,348) (1,437,595) (37,473) (39,015) (57,420)2018 (361,348) (1,437,595) (37,473) (39,015) (57,420)2019 (361,348) (1,437,595) (37,473) (39,015) (57,420)2020 – – – (39,015) (57,420)2021 – – – – (22,968) ______________ ______________ ______________ ______________ ______________ Total $ (1,445,392) $ (5,750,381) $ (149,891) $ (195,073) $ (310,069)

TOTAL IN-FLOWS & OUT-FLOWS AMORTIZATION OF OUT-FLOWS

Share (out-flow) (in-flow) PERS 2-3 TRS 2-3 LEOFF2 ________________ ________________ __________ __________ __________

PERS 1 538,164 1,806,741 2016 140,205 21,479 (873)PERS 2-3 630,923 7,187,976 2017 140,205 21,479 (873)TRS 1 22,263 187,364 2018 140,205 21,479 (873)TRS 2-3 120,282 234,087 2019 70,103 21,479 (873)LEOFF 2 (5,588) 367,490 2020 – 12,887 (873)__________ ________________ ________________ TOTAL 1,306,043 9,783,658 2021 – – (349)__________ ________________ ________________ __________ __________ __________ TOTAL 490,718 98,803 (4,715) __________ __________ __________

Change inProportionate

Differencein Earnings



NOTE 15 - DEFERRED COMPENSATION

The university, through the State of Washington, offers its employees a deferred compensation plan in accordance with Internal Revenue Code Section 457 . Under the plan, eligible employees can elect to defer a portion of their salary until future years . The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable financial emergency .

NOTE 16 - RELATED PARTY TRANSACTIONS

The Central Washington University Foundation is organized to operate exclusively for the purposes of encouraging, promoting, and supporting educational programs and scholarly pursuits at or in conjunction with Central Washington University . The Foundation provided $2,154,797 in scholarships and program support to the university during the fiscal year ending June 30, 2015 . Detailed financial information for the foundation may be obtained from its administrative office .

Summary financial information of the Central Washington University Foundation as of, and for, the years ended:

CWU FOUNDATION FINANCIAL INFORMATION June 30, 2015 _________________________________________________________________ Temporarily Permanently Unrestricted Restricted Restricted Total 2015 ___________ ___________ ___________ ___________

Income $ 3,827,937 $ (127,936) $ 772,835 $ 4,472,836Expenses 3,794,173 46,765 (55,838) 3,785,100 __________ __________ ___________ ___________Change in net position 33,764 (174,701) 828,673 687,736Net position at beginning of year 1,941,606 9,489,461 12,482,298 23,913,365 __________ __________ ___________ ___________ Net position at end of year $ 1,975,370 $ 9,314,760 $ 13,310,971 $ 24,601,101 __________ __________ ___________ ___________ __________ __________ ___________ ___________

June 30, 2014 _________________________________________________________________ Temporarily Permanently Unrestricted Restricted Restricted Total 2014 ___________ ___________ ___________ ___________

Income $ 3,097,274 $ 2,490,985 $ 403,172 $ 5,991,431Expenses 2,473,792 293,512 (262,624) 2,504,680 __________ __________ ___________ ___________Change in net position 623,482 2,197,473 665,796 3,486,751Net position at beginning of year 1,318,124 7,291,988 11,816,502 20,426,614 __________ __________ __________ ___________ Net position at end of year $ 1,941,606 $ 9,489,461 $ 12,482,298 $ 23,913,365 __________ __________ ___________ ___________ __________ __________ ___________ ___________



NOTE 17 - COMMITMENTS AND CONTINGENT LIABILITIES

The university had outstanding commitments under construction contracts of approximately $15,751,322 at June 30, 2015 . The university is party to various lawsuits arising out of the normal conduct of its operations . In the opinion of university management, the ultimate resolution of these matters will not have a material adverse effect upon the university’s financial position . The university participates in certain federal grant programs . These programs are subject to financial and compliance audits by the grantors or their representatives . Such audits could lead to requests for reimbursement to the grantor agencies for expenditures disallowed under terms of the grants . Management believes disallowances, if any, will not be material .

The Risk Management Act of Washington State provides a $5,000,000 self-insurance policy applying to all exposure to tort, general damage, and vehicle liability . The university purchases commercial property insurance for auxiliary enterprise buildings that were acquired with bond proceeds .

In accordance with State policy, the university self-insures unemployment compensation for all employees . Payments for state general fund employees are appropriated by the State . The university assesses a semi-monthly payroll expense for unemployment compensation for all local fund employees, based on employee earnings . The percentage charged is based primarily upon claims experience . Cash reserves for unemployment compensation for all local fund employees at June 30, 2015, were $726,182 . Payments made to State general fund employees and all local fund employees are as follows:

In academic year 2014-15, all tenure track and non-tenure track faculty with yearly contracts, were offered the choice to have their net pay spread over 12 months, through September 15, 2015, with 147 individuals requesting this option . This resulted in the accrual of additional employer costs for FY15, including salary, retirement and taxes . The additional amounts of salary accrued was $1,886,942 . The additional retirement was: PERS 1: $1,259, TRS2: $1,444, TRS3: $5,490, HERP: $8,880 and employer taxes accrued: $144,527 . Total accrued employer costs to pay out over summer: $2,202,403 .

UNEMPLOYMENT COMPENSATION PAID 2015 2014 2013 ________ ________ ________

State fund $ 101,814 $ 186,559 $ 66,906

Local fund $ 54,743 $ 131,674 $ 110,755



NOTE 18 - OPERATING EXPENSES BY NATURAL CLASSIFICATION

The statement of revenues, expenses, and changes in net position displays operating expenses by functional classification . The following table summarizes operating expenses by natural classification for the years ended:

NOTE 19 – PLEDGED REVENUES

The university has pledged specific revenues, net of specified operating expenses, to repay the principal and interest of revenue bonds . The revenue bonds are obligations of the university’s reporting segment referred to as “The System” (Note 20) with all revenues pledged as a whole to all debt service repayment . The following is a schedule of the pledged revenues and related debt:

*Total future principal and interest payments on debt.

OPERATING EXPENSES BY NATURAL CLASSIFICATION

June 30, 2015 June 30, 2014 _____________ _____________

Salary and wages $ 95,206,786 $ 89,834,593Benefits 31,745,394 29,435,171Goods and services 46,486,211 44,299,781Scholarships and fellowships 14,775,143 15,198,088Non capitalized facility improvements 4,235,840 6,330,563Supplies and materials 2,900,759 3,100,986Utilities 4,660,746 5,310,489Depreciation 15,240,940 16,947,773 ____________ ____________ Total $ 215,251,817 $ 210,457,404 ____________ ____________ ____________ ____________

PLEDGED REVENUES

Total Future Source of 2015 Revenues 2015 Debt Revenues Description Term of Revenue Pledged Pledged Service Pledged* of Debt Purpose of Debt Commitment __________________ _______________ _______________ _______________ _____________ ________________________ _____________

Student and activity fees $ 2,842,375 $ 2,479,951 $ 54,290,525 Series 2013 Construction of new 2034 Bonds Student Union Building and Recreation Center (SURC) Bookstore revenues 198,799 202,063 4,408,977 Series 2013 Construction of new 2034 Bonds bookstore as part of the new SURC Housing, parking, 7,340,367 6,649,741 141,029,520 Series 2008, Construction of Wendell Hill, 2040 and dining revenues 2010, 2012, Hall 2008, Barto Hall 2010, 2013 Bonds, Refunding bonds of 2012 and 2013 ____________ ___________ _____________ Total $ 10,381,541 $ 9,331,755 $ 199,729,022 ____________ ___________ _____________ ____________ ___________ _____________



NOTE 20 - SEGMENT INFORMATION

Central Washington University’s System operates the Student Union & Recreation Center, residence halls, apartment complexes, a conference program, dining facilities, parking services and the Wildcat Shop bookstore located on the Ellensburg campus . The system owns its buildings, while the university owns the land . The system issues revenue bonds from time to time to renovate and build new facilities . The system pledges its net revenues to cover the costs of debt service, for accounting purposes the system is considered a segment of the university .

Presented below are condensed financial statements for the system .

CONDENSED STATEMENT OF NET POSITION June 30, 2015 June 30, 2014 _____________ ______________Assets Current assets $ 35,785,006 $ 36,275,199 Non-current assets 142,419,047 146,606,698 Deferred out-flows 2,240,756 2,409,123 ____________ ____________ Total assets and deferred out-flows 180,444,809 185,291,019 ____________ ____________Liabilities Current liabilities 8,115,794 8,219,773 Non-current liabilities 126,183,621 128,239,636 Deferred in-flows 1,752,485 – ____________ ____________ Total liabilities and deferred in-flows 136,051,900 136,459,409 ____________ ____________Net position Net investment in capital assets 17,807,518 17,170,576 Unrestricted 26,585,390 31,661,034 ____________ ____________ Total net position $ 44,392,908 $ 48,831,610 ____________ ____________ ____________ ______________________________________________________________________________________________________________________________

CONDENSED STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITIONOperating revenues $ 51,689,953 $ 52,568,660Operating expenses 42,799,276 42,287,196Depreciation 4,178,204 4,117,971 ___________ ___________ Net operating income (loss) 4,712,473 6,163,493 ___________ ___________ Non-operating revenues (expenses) Interest on indebtedness (6,079,106) (6,049,898) Other non-operating revenue (expense), net 859,625 765,726 ___________ ___________ Total increase in net position (507,009) 879,321 Total net position, beginning of year 44,899,917 47,952,289 ___________ ___________ Total net position, end of year $ 44,392,908 $ 48,831,610 ___________ ___________ ___________ _____________________________________________________________________________________________________________________________

CONDENSED STATEMENT OF CASH FLOWS Net cash flows provided by: Operating activities $ 9,483,295 $ 10,349,374 Non-capital financing activities – – Investing activities 228,378 135,052 Capital and related financing (11,389,390) (10,342,601) ___________ ___________ Net increase (decrease) in cash (1,677,717) 141,824Cash—beginning of year 33,282,122 33,140,299 ___________ ___________ Cash—end of year $ 31,604,405 $ 33,282,123 ___________ ___________ ___________ ___________

Exhibit I

Exhibit II

CENTRAL WASHINGTON UNIVERSITYBUDGETED VERSUS ACTUAL ENROLLMENTAVERAGE ANNUAL FTE Year Budgeted Actual_________ _________ _________

2014-15 9,105 9,0892013-14 9,105 9,2922012-13 8,808 9,4802011-12 8,808 9,5812010-11 8,808 9,9822009-10 8,469 9,6732008-09 9,322 9,082

_______________________________________________________________________________________________________________________________________APPENDIX IBOND CONTINUING DISCLOSURE INFORMATION


CENTRAL WASHINGTON UNIVERSITYENROLLMENT STATISTICS (IPEDS) FOR FISCAL YEARS ENDED JUNE 30 2015 2014 2013 2012 2011 _______ _______ _______ _______ _______Fall quarter headcount Undergraduates Full-time 8,753 9,172 9,256 9,435 9,629 Part-time 2,211 1,636 1,481 1,335 1,423 ______ ______ ______ ______ ______ Total undergraduates 10,964 10,808 10,737 10,770 11,352 ______ ______ ______ ______ ______ Graduates Full-time 461 286 366 391 336 Part-time 374 193 165 159 226 ______ ______ ______ ______ ______ Total graduates 835 479 531 550 562 ______ ______ ______ ______ ______

Total undergraduates and graduates Full-time 9,214 9,458 9,622 9,826 9,965 Part-time 2,585 1,829 1,646 1,494 1,649 ______ ______ ______ ______ ______ Total full- and part-time 11,799 11,287 11,268 11,320 11,614 ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ Fall quarter FTE 9,752 10,193 10,177 10,411 10,430__________________________________________________________________________________________________________________________

2015 2014 2013 2012 2011 _______ _______ _______ _______ _______Freshmen Applications 4,108 4,434 4,528 4,553 4,856 Percent applicants admitted 87% 82% 80% 78% 81% Enrolled 1,363 1,502 1,438 1,383 1,667 Enrolled percent of admissions 38% 41% 40% 39% 42%

Transfer Students Applications 2,227 2,313 2,607 2,721 2,702 Percent applicants admitted 87% 87% 85% 82% 83% Enrolled 1,333 1,374 1,406 1,624 1,461 Enrolled percent of admissions 68% 68% 63% 73% –


Exhibit III

(1) Excludes depreciation (2) Excludes capitalized interest

APPENDIX I (continued) ___________________________________________________________________________________________________________________________________

CENTRAL WASHINGTON UNIVERSITYHISTORICAL OPERATIONS FOR THE SYSTEM FOR FISCAL YEARS ENDED JUNE 30 2015 2014 2013 2012 2011 ___________ ___________ ___________ ___________ ___________Gross revenue Housing and dining $ 29,417,542 $ 30,102,132 $ 28,236,359 $ 27,555,019 $ 28,573,970 Services and activities 12,254,949 12,482,937 12,964,152 13,253,713 12,441,403 University store 8,974,063 8,950,940 9,343,347 9,603,869 10,202,361 Parking 1,043,399 1,032,651 1,083,270 1,027,555 1,108,149 ___________ ___________ ___________ __________ __________ Total gross revenue 51,689,953 52,568,660 51,627,127 51,440,156 52,325,883 ___________ ___________ ___________ __________ __________

Operating expenses (1)

Housing and dining 23,594,530 23,914,703 22,714,484 22,558,681 21,421,338 Services and activities 9,412,566 8,633,986 8,130,565 8,966,502 8,325,306 University store 8,775,264 8,711,474 8,812,802 9,464,942 9,315,245 Parking 1,016,916 1,027,033 1,064,399 1,016,236 1,024,457 ___________ ___________ ___________ __________ __________ Total operating expenses 42,799,276 42,287,196 40,722,249 42,006,361 40,086,346 ___________ ___________ ___________ __________ __________Net revenue $ 8,890,678 $ 10,281,464 $ 10,904,878 $ 9,433,795 $ 12,239,537 ___________ ___________ ___________ __________ __________ ___________ ___________ ___________ __________ __________

Total debt service (2) $ 8,700,508 $ 8,949,260 $ 8,894,792 $ 7,269,606 $ 7,271,036

___________________________________________________________________________________________________________________________________APPENDIX I (continued)


Exhibit IV

CENTRAL WASHINGTON UNIVERSITYSCHEDULE OF SYSTEM REVENUE BOND DEBT SERVICE

The Series 2008 Bonds The Series 2010 Bonds The Series 2012 Bonds Fiscal

_________________________ _________________________ _________________________

Year Principal Interest Principal Interest Principal Interest_______ __________ __________ __________ __________ __________ __________

2016 845,000 1,462,600 585,000 2,056,640 315,000 214,1902017 880,000 1,428,800 610,000 2,027,390 325,000 207,8902018 915,000 1,393,600 645,000 1,996,890 325,000 201,3902019 950,000 1,357,000 675,000 1,964,640 335,000 193,2652020 985,000 1,319,000 1,290,000 1,930,890 345,000 184,8902021 1,025,000 1,279,600 1,335,000 1,866,390 355,000 174,5402022 1,070,000 1,237,319 1,375,000 1,799,640 365,000 163,8902023 1,115,000 1,191,844 645,000 1,730,890 380,000 152,9402024 1,160,000 1,144,456 665,000 1,693,480 390,000 141,5402025 1,210,000 1,095,156 690,000 1,654,910 405,000 129,6452026 1,265,000 1,042,219 1,515,000 1,614,890 415,000 116,4832027 1,320,000 986,875 1,580,000 1,516,415 425,000 102,5802028 1,380,000 927,475 1,650,000 1,413,715 445,000 87,9172029 1,440,000 865,375 1,715,000 1,306,465 460,000 72,1202030 1,510,000 798,775 1,790,000 1,194,990 475,000 55,3302031 1,575,000 728,938 1,260,000 1,078,640 490,000 37,7552032 1,650,000 656,094 1,320,000 991,070 510,000 19,3802033 1,725,000 579,781 1,380,000 899,330 – –2034 1,810,000 500,000 1,440,000 803,420 – –2035 1,900,000 409,500 1,505,000 703,340 – –2036 1,995,000 314,500 1,575,000 598,743 – –2037 2,095,000 214,750 1,645,000 489,280 – –2038 2,200,000 110,000 1,720,000 374,952 – –2039 – – 1,795,000 255,412 – –2040 – – 1,880,000 130,660 – – __________ __________ ___________ ___________ ___________ ___________ Total $32,020,000 $21,043,657 $32,285,000 $32,093,082 $6,760,000 $ 2,255,745 __________ __________ ___________ ___________ ___________ ___________ __________ __________ ___________ ___________ ___________ ___________

*Continued on page 48



Exhibit IV (CONTINUED)

DEMOGRAPHIC DATA

These schedules offer demographic indicators to help the reader understand the environment within which the university’s financial activities take place:

• Page 49 Freshmen Admissions• Page 50-51 Enrollment• Page 52 Degrees Earned• Page 53-54 Faculty and Staff

The Series 2013 Bonds _________________________ Fiscal Year Principal Interest Total __________ __________ __________ __________

2016 1,770,000 2,083,325 9,331,7552017 1,860,000 1,944,825 9,333,9052018 1,960,000 1,901,825 9,338,7052019 2,050,000 1,803,825 9,328,7302020 2,150,000 1,701,325 9,906,1052021 2,260,000 1,593,825 9,889,3552022 2,375,000 1,480,825 9,866,6742023 2,495,000 1,362,075 9,072,7492024 2,620,000 1,237,325 9,051,8012025 2,725,000 1,132,525 9,042,2362026 2,835,000 1,023,525 9,827,1172027 2,945,000 910,125 9,785,9952028 3,065,000 792,325 9,761,4322029 3,160,000 696,544 9,715,5042030 3,265,000 593,844 9,682,9392031 3,370,000 487,731 9,028,0642032 3,485,000 373,994 9,005,5382033 3,600,000 256,375 8,440,4862034 3,725,000 130,375 8,408,7952035 – – 4,517,8402036 – – 4,483,2432037 – – 4,444,0302038 – – 4,404,9522039 – – 2,050,4122040 – – 2,010,660 __________ __________ __________ Total $51,715,000 $21,556,538 $199,729,022 __________ __________ ____________ __________ __________ ____________



STATISTICS SECTION

ADMISSIONS, ENROLLMENT, AND DEGREES EARNED (Fall Enrollment)

Freshman 2015-16 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10____________ ___________ __________ __________ ___________ __________ __________ ___________

Applications 4,940 4,120 4,507 4,528 4,558 4,856 4,902Accepted 4,030 3,562 3,703 3,630 3,573 3,953 4,044Enrolled 1,652 1,363 1,502 1,438 1,384 1,667 1,645 __________ _________ __________ ____________ ____________ ____________ ____________Accepted as % of applications 81 .6% 86 .5% 82 .2% 80 .2% 78 .4% 81 .4% 82 .5% __________ _________ __________ ____________ ____________ ____________ ____________Enrolled as % of accepted 41 .0% 38 .3% 40 .6% 39 .6% 38 .7% 42 .2% 40 .7%

Freshman 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03____________ ___________ __________ __________ ___________ __________ __________ ___________

Applications 5,013 4,602 3,945 4,656 4,230 3,905 3,575Accepted 3,968 3,688 2,966 3,554 3,493 3,261 3,053Enrolled 1,559 1,473 1,478 1,435 1,388 1,337 1,353 __________ _________ __________ ____________ ____________ ____________ ____________Accepted as % of applications 79 .2% 80 .1% 75 .2% 76 .3% 82 .6% 83 .5% 85 .4% __________ _________ __________ ____________ ____________ ____________ ____________Enrolled as % of accepted 39 .3% 39 .9% 49 .8% 40 .4% 39 .7% 41 .0% 44 .3%

Freshman 2001-02____________ ___________

Applications 3,008Accepted 2,640Enrolled 1,256 __________Accepted as % of applications 87 .8% __________Enrolled as % of accepted 47 .6%

Admissions

Admissions

Admissions

PERCENT OF ACCEPTED AND ENROLLED100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

81.6%

41%

86.5%

82.2%80.2% 78.4%

81.4% 82.5%79.2% 80.1% 75.2% 76.3%

82.6% 83.5% 85.4%

87.8%

38.3%40.6%

39.6% 38.7%42.2% 40.7%

39.9%39.3%

49.8%

40.4%39.7%

41%44.3%

47.6%

2015-16 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02

Accepted as % of applications Enrolled as % of accepted



STATISTICS SECTION (CONTINUED)


(Headcount) 2015-16 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10____________ ___________ __________ __________ ___________ __________ __________ ___________

Undergraduate, post-baccalaureate, and graduate 11,996 11,799 11,287 11,268 11,320 11,614 11,357Men 5,786 5,652 5,552 5,520 5,564 5,727 5,491 __________ _________ __________ ____________ ____________ ____________ ____________Percentage of total men 48 .2% 47 .9% 49 .2% 49 .0% 49 .2% 49 .3% 48 .3%Women 6,210 6,147 5,735 5,748 5,756 5,887 5,866 __________ _________ __________ ____________ ____________ ____________ ____________Percentage of total women 51 .8% 52 .1% 50 .8% 51 .0% 50 .8% 50 .7% 51 .7%

(Headcount) 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03____________ ___________ __________ __________ ___________ __________ __________ ___________

Undergraduate, post-baccalaureate, and graduate 10,662 10,505 10,688 10,190 9,912 9,903 9,203Men 5,115 4,923 5,046 4,761 4,654 4,678 4,311 __________ _________ __________ ____________ ____________ ____________ ____________Percentage of total men 48 .0% 46 .9% 47 .2% 46 .7% 47 .0% 47 .2% 46 .8%Women 5,547 5,582 5,642 5,429 5,258 5,225 4,892 __________ _________ __________ ____________ ____________ ____________ ____________Percentage of total women 52 .0% 53 .1% 52 .8% 53 .3% 53 .0% 52 .8% 53 .2%

(Headcount) 2001-02____________ ___________

Undergraduate, post-baccalaureate, and graduate 8,826Men 4,072 __________Percentage of total men 46 .1%Women 4,754 __________Percentage of total women 53 .9%

Enrollment

Enrollment

Enrollment

Source: Central Washington University Office of Institutional Effectiveness



PERCENT OF MEN AND WOMEN - HEADCOUNT (Fall Enrollment)

2015-16 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02

75%

70%

65%

60%

55%

50%

45%

40%

35%

30%

2,000

4,000

6,000

8,000

10,000

12,000

14,000

0

11,9

96

11,7

99

11,2

87

11,2

68

11,3

20

11,6

14

11,3

57

10,6

62

10,5

05

10,6

88

10,1

90

9,91

2

9,90

3

9,20

3

8,82

6

48.2

%

47.9

%

49.2

%

49.0

%

49.2

%

49.3

%

48.3

%

48.0

%

46.9

%

47.2

%

46.7

%

47.0

%

47.2

%

46.8

%

46.1

%

51.8

%

52.1

%

50.8

%

51.0

%

50.8

%

50.7

%

51.7

%

52.0

%

53.1

%

52.8

%

53.3

%

53.0

%

52.8

%

53.2

%

53.9

%

)

Percentage of total men (Headcount) Percentage of total women (Headcount)

Undergraduate, post-baccalaureate, and graduate (Headcount)


PERCENT OF MEN AND WOMEN - HEADCOUNT (Fall Enrollment)

2015-16 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02

12,000

10,000

8,000

6,000

4,000

2,000

51.8% 52.1% 50.8% 51.0% 50.8% 53.0%50.7% 51.7% 52.0% 53.1% 52.8% 53.3% 52.8% 53.2% 53.9%

48.2% 47.9% 49.2% 49.0% 49.2% 47.0%49.3% 48.3% 48.0% 46.9% 47.2% 46.7% 47.2% 46.8% 46.1%

Percentage of total men (Headcount) Percentage of total women (Headcount)

Tota

l nu

mb

er o

f en

rolle

d s

tud

ents





Degrees Earned 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10 2008-09____________ ___________ __________ __________ ___________ __________ __________ ___________

Baccalaureate 2,671 2,439 2,590 2,505 2,436 2,440 2,417Master’s 212 215 254 230 207 183 175 __________ _________ __________ ____________ ____________ ____________ ____________ Total earned 2,883 2,654 2,844 2,735 2,643 2,623 2,592

Degrees Earned 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02____________ ___________ __________ __________ ___________ __________ __________ ___________

Baccalaureate 2,485 2,352 2,139 2,126 2,106 1,923 1,913Master’s 168 159 201 173 207 225 198 __________ _________ __________ ____________ ____________ ____________ ____________ Total earned 2,653 2,511 2,340 2,299 2,313 2,148 2,111


DEGREES EARNED




FACULTY AND STAFF (Fall Enrollment)

2016 2015 2014 2013 2012 2011 2010 2009 ___________ __________ __________ __________ ___________ __________ __________ _________Fall employment of fiscal year - FTE

Faculty 636 .3 622 609 598 .5 562 .4 570 .2 560 563 .9Administrative professional 297 .9 282 247 .3 218 .8 202 .7 206 .9 221 .7 222 .6Classified staff 576 .9 581 591 .2 598 .2 596 .7 591 .3 632 .7 632 .5 __________ __________ __________ __________ __________ __________ __________ __________ 1,511.1 1,485 1,447.5 1,415.5 1,361.8 1,368.4 1,414.4 1,419

Fall employment of fiscal year - Headcount

Faculty 739 730 696 695 655 689 682 683Administrative professional 301 288 252 224 212 213 231 235Classified staff 593 602 616 623 625 625 675 677 __________ __________ __________ __________ __________ __________ __________ __________ 1,633 1,620 1,564 1,542 1,492 1,527 1,588 1,595

FTE - Percent of total

Faculty 42% 42% 42% 42% 41% 42% 40% 40%Administrative professional 20% 19% 17% 15% 15% 15% 16% 16%Classified staff 38% 39% 41% 42% 44% 43% 45% 45%

Headcount - Percent of total

Faculty 45% 45% 45% 45% 44% 45% 43% 43%Administrative professional 18% 18% 16% 15% 14% 14% 15% 15%Classified staff 36% 37% 39% 40% 42% 41% 43% 42%





100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%2016 2015 2014 2013 2012 2011 2010 2009

38% 45%

20% 19% 17% 15% 15% 15% 16% 16%

42% 42% 42% 42% 41% 42% 40% 40%

FACULTY AND STAFF - FTE (Fall data of fiscal year)

39% 41% 42% 44% 43% 45%

Administrative professionalFaculty Classified staff



REQUIRED SUPPLEMENTARY INFORMATION (RSI)

Notes to RSI Methods and assumptions used in calculations of actuarial determined contributions for PERS, TRS and LEOFF– The Office of the State Actuary (OSA) calculates the Actuarially Determined Contributions (ADC) based on the results of an actuarial valuation consistent with the state’s funding policy defined under Chapter 41 .45 RCW . Consistent with the state’s contribution rate adoption process, the results of an actuarial valuation with an odd-numbered year valuation date determine the ADC for the biennium that ensues two years later . For example, the actuarial valuation with a June 30, 2013 valuation date, completed in the Fall of 2014, determines the ADC for the period beginning July 1, 2015 and ending June 30, 2017 .

*As of June 30; this schedule is to be built prospectively until it contains 10 years of data .

CENTRAL WASHINGTON UNIVERSITYSCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY ALL CWU DRS PLANS AS OF JUNE 30, 2015

PERS 1 PERS 2-3 TRS 1 TRS 2-3 LEOFF 2 ______________ ______________ ______________ ______________ ______________Employer’s proportion of the net pension liability (asset) .286822% .335470% .036227% .031582% .052338%Employer’s proportionate share of the net pension liability $ 14,448,793 $ 6,781,052 $ 1,068,489 $ 102,007 $ (694,553)LEOFF 2 employer’s only- State’s proportionate share of the net pension liability (asset) associated with the employer – – – – (1,326,348,446) ______________ ______________ ______________ ______________ ______________ Total $ 14,448,793 $ 6,781,052 $ 1,068,489 $ 102,007 (1,327,043,000) ______________ ______________ ______________ ______________ ______________

Employer’s covered employee payroll $ 1,286,177 $ 28,872,627 $ 134,767 $ 1,387,876 $ 873,737Employer’s proportionate share of the net pension liability as a percentage of covered employee payroll 1123 .39% 23 .49% 792 .84% 7 .35% .05%Plan fiduciary net position as a percentage of the total pension liability 68 .80% 54 .18% 5 .46% .22% .62%



CENTRAL WASHINGTON UNIVERSITYSCHEDULE OF EMPLOYER CONTRIBUTIONS ALL CWU DRS PLANS AS OF JUNE 30, 2015 (LAST 10 FISCAL YEARS*)

PERS 1 PERS 2-3 TRS 1 TRS 2-3 LEOFF 2 ______________ ______________ ______________ ______________ ______________Statutorily or contractually required contributions $ 73,572 $ 1,417,156 $ 13,726 $ 77,493 $ 73,572Contributions in relation to the statutorily or contractually required contributions (73,572) (1,417,156) (13,726) (77,493) (73,572)Contribution deficiency (excess) – – – – –Covered employer payroll 1,286,177 28,872,627 134,767 1,387,876 873,737Contributions as a percentage of covered employee payroll 5 .72% 4 .91% 10 .18% 5 .58% 8 .42%

CWU is an AA/EEO/Title IX Institution. For accommodation e-mail: [email protected] • 15-HR-12TS

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